OCR GCSE Economics - Revision 1

Why does scarcity exist?

• Each year workers tend to produce less than previously 
• Machines wear out in time
• There are not sufficient resources to meet everyone's wants
• There is a limit to people's wants 

What factor of production's function is to make decisions and take risks?

• Capital
• Enterprise 
• Land 
• Labour 

What type of factor of production is a road?

• Capital
• Enterprise
• Labour
• Land 

What is meant by 'labour' in economics?

• Hard physical work used to produce manufactured goods 
• Human mental and physical effort used for producing goods and services
• Natural resources used in the productive process
• Risk taking and organising the factors of production

Which of these is not one of the key economic decisions?

• what to produce?

• how to produce?

• who is to benefit from the goods and services produced?

• how much to charge for the goods and services produced?

 The difference between a good and a service is that:

• Goods are available in unlimited quantaties and services are not 
• Goods are tangible and services are not 
• Services are available in unlimited quantaties and goods are not 
• goods help satisfy unlimited wants and services do not

What happens every time we make a decision?

• We win!

• We incur an opportunity cost

• We incur an opportunity loss

• We incur an opportunity cost of multiple other options

What term describes the tools and technology used to make a product?

• capital goods
• human capital
• exports
• imports

Which of these is a description of a 'trade-off'?

• Having more than you want, or need.

• When people work in jobs where they produce a few special goods, or services.

• When you get a little less of one thing in order to get a little more of something else.

• Something one person does for someone else.

What is the world's 3rd largest economy?

• USA

• China

• UK

• Japan