4th Year Economics October Test

Money that the government collects from individuals and businesses to pay for public goods and services

• Rand

• Tax

• dollar

• serving

what do we call someone who took a risk and start a business?

• manager

• entrepreneurship

• entrepreneur

• enterprise

What is the remuneration of an entrepreneur?

• profit

• wage

• salary

• rent

Another name for natural resources

• land

• unnatural resources

• water

• air

The study of factors of production falls under_

• economic pursuit

• contemporary economic

• microeconomics

• macroeconomics

The definition of the law of diminishing marginal utility

• As more units are consumed the marginal utility falls.

• As more units are consumed the marginal utility increases.

• As price decreases quantity demanded increases.

• As price increases consumers are willing to pay more.

The total utility definition states:

• The usefulness, benefit or satisfaction a consumer gains from life

• The satisfaction gained from consuming a quantity of an economic good, measured in utils.

• The added consumer satisfaction from consuming a quantity of a good.

• The consumer's satisfaction from consuming a quantity of a good.

The wish to have something is_

• Desire

• Want

• Need

• Demand

Willingness to pay for the want is_

• Need

• Desire

• Demand

• Show off

If a consumer was to act rational, they would....

• will spend their income in such a way that they will achieve the most satisfaction from these goods and services

• see two identical products priced differently in two different shops they will buy the cheaper good

• will not demand something that does not provide satisfaction