ECONOMICS PAST PAPER QUESTIONS

Economics may be described as a “social science” since it deals with

• the economy

• the environment

• human behaviour

• production and consumption

Which of the following rewards accrues to the factor of production called 'capital'?

• Rent

• Profit

• Wage

• Interest

An unemployed person accepts a job. What is the opportunity cost of his decision?

• The leisure time lost

• The income from the job

• The income tax he now pays

• The cost of travelling to work

A student has a daily allowance of$20 with which he can purchase chicken and chips or a burger, but NOT both. If he purchases the chicken and chips, the opportunity cost of his decision will be

• the burger he gave up

• the satisfaction he gets from burgers

• the price of the chicken and chips

• the satisfaction he gets from the chicken and chips

An outward shift in a production possibility curve can be caused by an

• increase in wages

• increase in prices

• increase in imports

• improvement in technology

In an attempt to increase the efficiency of its staff, management assigns specific tasks to each worker. This is an example of

• progress

• productivity

• specialization

• entrepreneurial ability

A pure public good can be described as

• diminishable

• zero-priced

• excludable

• rivalrous

At which of the following prices are there shortages in the market?

• $2 and $4

• $4 and $6

• $6 and $8

• $8 and $10

What is the equilibrium price?

• $ 4

• $8

• $12

• $16

The term 'money supply' refers to the

• total stock of money in an economy at any moment

• amount of money traded in the foreign exchange market

• total asset base of the institutions in the financial sector

• total amount of gold, silver and other precious metals in reserve