LEAP test year 9 2023

Of the following, which is an example of a labour resource?

• a computer used by an accountant

• a piece of timber used in the construction of a house

• an oil well

• the work of doctor in a hospital

In Economics, the term ‘capital’ refers to:

• money that invested by owners in a business.

• the profits that are generated by a business.

• items such as machinery which are used to produce goods and services.

• the money lent by banks to businesses.

The opportunity cost of building a new library is the:

• cost of building the skate park now as opposed to building the library later.

• next best alternative goods or services that must be given up to build the library.

• monetary cost of the new library.

• cost of supervising library activities.

The following is either production, income or expenditure.

Zaynab buys a pie from the canteen

• Production

• Income

• Expenditure

True or false:

Wants are what we need to survive.

• True

• False

Which of the following would not be considered an economic resource?

• money

• a coal mine

• a tyre factory

• factory worker

What is the cause of the basic economic problem?

• wage levels are too low

• low prices create too much demand for limited goods and services

• resources are used inefficiently

• needs and wants are unlimited but resources are scarce

Which combination of the following are capital factors of production?

• a forest and a car jack owned by a consumer

• a family car and mineral resources

• factory equipment and school desks

• factory buildings and agricultural land.

Which combination of the following is known in economics as ‘land’ resources?

• iron ore and farm tractors

• agricultural land and iron ore

• farm tools and forests

• farm tools and mineral resources

You are considering three possible ways of using two hours of leisure time:

· Going to the pool which you value at $35

· Playing netball that you value at $20

· Having a friend over which you value at $10.

You decide to go to the pool. The opportunity cost is therefore:

• $35

• $20

• $10

• $65