Economics Igcse Paper 1 MCQs

Front

Why do consumers have to make choices when spending their income?

Back

Consumer wants cannot all be satisfied with their income.

Front

What is the key role of an entrepreneur?

Back

Risk taker

Front

What is a disadvantage of a market economic system?

Back

Market dominance by firms can lead to higher prices.

Front

In which occupation would wages tend to increase? Options: in those where a worker is paid weekly, in those where a worker needs less training, in those where there is an excess demand for labour, in those where work becomes less dangerous

Back

in those where there is an excess demand for labour

Front

What can a central bank increase in order to reduce consumer borrowing? Options: commercial bank deposits, government spending, the exchange rate, the rate of interest

Back

the rate of interest

Front

To help reduce the price of oil, new supplies are needed. However, objectors oppose exploration of new sites because of the environmental damage it may cause. Why is this statement an example of the basic economic problem?

Back

Oil is a limited resource.

Front

Which combination of characteristics describes a public good? Options: excludable and non-rival in consumption, excludable and rival in consumption, non-excludable and non-rival in consumption, non-excludable and rival in consumption

Back

non-excludable and non-rival in consumption

Front

What is a free good?

Back

a good that has no opportunity cost

Front

A monopolist uses oil in its production process that causes pollution. The monopolist is efficient at producing large quantities of its product which is sold at a very low price. What is the likely cause of market failure?

Back

external costs of production

Front

Which group of people is most likely to save the largest proportion of their income? A middle-aged people B people earning the minimum wage

Back

middle-aged people