DP Economics Questionbank

Outline the reason why a fall in the price of the dollar should lead to an increase in the quantity of dollars demanded.

Outline the reason why a fall in the price of the dollar should lead to an increase in the quantity of dollars demanded.

Identify the slope of the supply curve.

Draw and label the new supply curve on Figure 1.

Using your answer to part (c), outline the reason why an increase in costs of production has resulted in a new supply function.

Determine the slope of the market supply function for the corn farmers in Nissos.

Assuming that there are no restrictions on the importing of bananas into Country A:

State the quantity of bananas which will be purchased each month in Country A.

Assuming that there are no restrictions on the importing of bananas into Country A:

Calculate the monthly expenditure on bananas imported into Country A.

Using a supply and demand diagram with international trade values from the text, explain the statement that “The US imported 1200 million pounds (lb) of shrimp last year and produced 100 million pounds (lb) of shrimp domestically” (paragraph [2]) (Does not need to be to scale).

Using a demand and supply diagram, explain why “the double effect of slowing growth in China and higher levels of production in Australia has driven the price of iron ore lower” (paragraph 1).

Calculate the social surplus at the equilibrium market price.

Explain how an increase in the costs of factors of production would affect the market price and output of a good.

Calculate the equilibrium price and quantity per month.

Calculate the excess demand/excess supply (state which of these) at a price of $8.50.

Calculate the price at which excess demand of 18 widgets would result.

Define the term excess demand indicated in bold in the text (paragraph [3]).

Draw and label a curve that illustrates Fairland’s minimum wage on Figure 6.

Calculate the resulting unemployment among the low-wage workers.

Calculate the monthly equilibrium quantity of corn in Nissos.

Plot and label the new supply curve on Figure 2.

Using a production possibilities curve (PPC) diagram, explain why choices have to be made in all economies.

Using a definition of the term opportunity cost and information from the text, explain how the servicing of debt has an opportunity cost that may affect economic development in Sri Lanka.

Assuming that 25 000 pencils are produced initially, identify the opportunity cost for Country H if the production of rice is to be increased by 100 %.

Assuming that there are no restrictions on the importing of bananas into Country A:

Calculate the domestic producer surplus.

Discuss the view that competitive markets will always achieve allocative efficiency.

Define the term social (community) surplus.

Calculate the social (community) surplus in the market for cotton in San Marcus.

Calculate the resulting change in producer surplus following the introduction of the subsidy to cotton producers in San Marcus.

Calculate the change in the consumer surplus resulting from the subsidy.

Examine the view that the best allocation of resources, from society’s point of view, occurs where the marginal private benefit equals the marginal private cost.

Calculate the change in producer surplus resulting from the increase in costs of production.

Calculate the change in consumer surplus in Country Z as a result of the increase in demand for oranges.

Calculate the change in social (community) surplus as a result of the increase in demand for oranges.

Using Figure 1, calculate the consumer surplus in Nissos at the market equilibrium.