#1
Which of the following best defines resource demand in economics?
The willingness and ability of consumers to purchase resources at various prices
ExplanationResource demand is determined by consumers' willingness and ability to buy resources at different price points.
#2
What does the law of demand state in relation to resource demand?
As the price of a resource increases, the quantity demanded decreases
ExplanationThe law of demand states an inverse relationship between resource price and quantity demanded, as higher prices lead to lower demand.
#3
In economics, what is the concept of resource utilization?
The efficiency with which resources are allocated and used to produce goods and services
ExplanationResource utilization refers to how efficiently resources are allocated and used in the production of goods and services.
#4
Which of the following is NOT a factor affecting resource utilization?
Resource availability
ExplanationResource availability is not a factor affecting resource utilization; efficiency in allocation plays a more crucial role.
#5
What is the concept of elasticity of resource demand?
It measures the responsiveness of resource quantity demanded to a change in resource prices
ExplanationElasticity of resource demand gauges how the quantity demanded changes in response to fluctuations in resource prices.
#6
Which of the following is a determinant of resource demand elasticity?
The availability of substitutes
ExplanationThe presence of substitutes is a determinant of elasticity, influencing how responsive resource quantity demanded is to price changes.
#7
What is the relationship between resource demand and productivity?
Higher resource demand leads to higher productivity
ExplanationIncreased resource demand typically results in heightened productivity levels.
#8
Which of the following is a determinant of resource demand?
All of the above
ExplanationVarious factors, including price, consumer preferences, and substitutes, collectively determine resource demand.
#9
What is the difference between resource demand and resource quantity demanded?
Resource demand refers to the total amount of resources desired by consumers, while quantity demanded refers to the amount demanded at a specific price
ExplanationResource demand is the overall desired amount, whereas quantity demanded is the amount desired at a particular price.
#10
What does a perfectly elastic resource demand curve look like?
A horizontal line
ExplanationA perfectly elastic demand curve is represented by a horizontal line, indicating that quantity demanded remains constant regardless of price changes.
#11
How does resource utilization affect economic growth?
Higher resource utilization generally leads to higher economic growth
ExplanationIncreased resource utilization typically results in elevated economic growth.
#12
What is the difference between resource demand and derived demand?
Resource demand refers to the demand for resources by consumers, while derived demand refers to the demand for resources by firms to produce goods and services
ExplanationResource demand is from consumers, while derived demand comes from firms needing resources for production.
#13
What is the concept of marginal productivity of resources?
It measures the additional output produced by an additional unit of a resource
ExplanationMarginal productivity of resources quantifies the added output resulting from an extra unit of a resource.
#14
How does the availability of technology affect resource utilization?
It increases resource utilization
ExplanationTechnological availability enhances resource utilization by improving efficiency and effectiveness.