GWC N5 Economics The Basic Economic Problem

Opportuity costs is

• making the wrong decision
• the sacrifice of the next best alternative foregone
• chosing one thing over another
• not having enough money to do everything you want

The basic economic problem is

• unlimited wants
• limited resources
• scarcity
• greed

The basic economic problem can never be eliminated.

• true
• false

A need is

• something we have to have in order to survive
• something we have to have to make our life better

A want is

• something we have to have in order to survive
• something we would like to have to make our life better

Which is not an example of a need

• water
• clothing
• a holiday abroad
• shelter

Which are not a factors of production

• land
• rent
• capital
• interest

Which are rewards to the factors of production.

• rent
• land
• capital
• interest

What is the reward to land?

• wages

• rent

• capital

• interest