IGCSE Economics _ CORE CHAPTER 1 AND 2

The Economic Problem is trying to allocate the world's finite resources to satisfy the worlds infinite wants … which is NOT a question an economic system should answer

• What to Produce?

• How to Produce?

• Who to Produce for?

• When to Produce

Which statement best describes Opportunity Cost

• The next best alternative chosen

• The next best alternative forgone

• The best alternative chosen

• The worst alternative forgone

Which points on the PPC / PPF represent the economy operating at maximum output

• C & D

• C

• D

• A & C

• A & B

Which point/s on the PPF / PPC represent an economy operating with unemployed resources

• D

• A

• C

• B

• None of the above

Which point/s on the PPF / PPC represent a level of production which is unattainable due to insufficient resources

• A

• B

• C

• D

• None of the above

Which of the following is NOT likely to cause Economic Growth (an outward shift of the PPF/PPC)

• Increase Quantity of Resources

• Increase Quality of Resources

• Discovering new resources

• Discovering new ways to exploit existing resources

• Depletion of existing resources

Consumers, just never stop wanting things this is because their wants are ___________ ?

To make a __________ decision means to make a decision based on clear thought or reason

The money which a business receives from sales of goods/services to customers is known as ____________

A line on a graph which shows how much will be bought at any given price is known as a ___________ curve