Singapore A-Level H2 Economics central themes overview quiz (SEAB 9570) quiz

The money price paid for a good at the point of sale, as listed on its tag or shown at the checkout counter

The total cost of producing all goods and services in an economy over a given period such as a single year

The value of the next best alternative forgone when a choice is made

The cost to the government of correcting a market failure through taxation, subsidy or direct regulation

Total revenue falls

Total revenue stays exactly the same

Total revenue falls to zero

Total revenue rises

Because the market price reflects only private costs, ignoring the external cost imposed on third parties

Because firms consistently overestimate the level of demand for the good and so set their output far too high

Because the government subsidises the good, lowering its price and encouraging firms to expand their production

Because consumers have perfect information about the good and so demand far more of it than they otherwise would

Where total revenue is at its highest, regardless of what is happening to the firm's costs at that level of output

Where marginal revenue equals marginal cost ($MR = MC$)

Where average cost is at its lowest, so that the firm is operating at its most productively efficient scale of output

Where price is equal to average revenue, which holds at every level of output for a firm that is a price taker

A single seller with significant price-setting power and no close rivals offering a substitute for its product

A few large interdependent firms whose pricing and output decisions each take careful account of the others' likely response

Many small firms selling a homogeneous product, each a price taker, with free entry and exit

One dominant firm holding most of the market alongside many tiny rivals that compete only at the fringes for the rest

Excessive private provision, with firms supplying far more of the good than society actually needs or wants

A perfectly efficient allocation of the good, with the market supplying exactly the socially optimal quantity

A negative externality, in which the consumption of the good imposes a spillover cost on uninvolved third parties

The free-rider problem, so the market under-provides or fails to provide it

By lowering the local-currency price of imports, easing cost and price pressures in an import-reliant economy

By raising the local-currency price of imports, which feeds directly through into higher consumer prices at home

By increasing the volume of exports immediately, which raises national income and so pushes up the domestic price level

By raising domestic interest rates directly, which is the chief instrument the central bank uses to control inflation

They are simply the same thing measured twice over, so the two terms can be used interchangeably without any confusion

Actual growth is the realised rise in real output; potential growth is the rise in the economy's productive capacity

Actual growth applies only to closed economies with no trade, while potential growth applies only to open trading economies

Potential growth is a measure of inflation, capturing the rate at which the general price level rises over a given period

A large rise in real output with no change in the price level at all, since firms simply expand to meet the new demand

A fall in the general price level, as the extra demand drives firms to compete harder and cut their prices to consumers

Mainly a rise in the general price level (demand-pull inflation) with limited extra output

An outward shift of long-run aggregate supply, as the extra demand permanently raises the economy's productive capacity

Only if one country is better at producing absolutely everything, holding an absolute advantage across all goods

Because trade always benefits the exporting country while harming the importing country that buys the goods from it

Because the exchange rates between the two countries are fixed, which is what makes the gains from trade possible

Because each can specialise in goods it produces at lower opportunity cost, raising total output

Because those parts ask candidates to weigh significance and reach a justified judgement, not merely explain

Because longer answers always score higher marks, so filling the page with more material is rewarded over concision

Because diagrams are strictly banned from the evaluative parts of an essay and may appear only in the explanatory sections

Because strong evaluation needs no economic theory at all and rests instead on the candidate's own personal opinion

Because government intervention always fixes the market perfectly, so the outcome can never end up worse than before

Because imperfect information, unintended consequences or administrative costs can make the outcome worse than the original failure

Because governments never actually intervene in markets in practice, leaving every market failure entirely uncorrected

Because market failure does not actually exist at all, so any government intervention is by definition tackling a problem that is not even real