Pop Quiz for the new year

What would cause an increase in the problem of scarcity?

• A reduction in resources

• A reduction in wants

• A rise in productivity

• A rise in the mobility of resources

What is meant by investment in human capital ?

• encouraging immigration of people of working age

• paying bonuses to workers to encourage them to increase their output

• spending money and time on educating and training workers

• upgrading the machines labour works with

Which item is a factor of production ?

• the food a farmer produces

• the satisfaction a farmer gains from his work

• the tractor a farmer drives

• the wages a farmer pays his workers

Which form of air is an economic good?

• Air at ground level

• Air from an air conditioning system

• Air above an ocean

• Air in a tropical rainforest

Which item used in the production of textiles by a firm would an economist classify as land?

• Sewing machines

• The factory

• Untrained workers

• Water taken from a river

What might be the opportunity cost of using a bus to transport students to school?

• Increasing the earnings of the bus company

• paying the wages to the driver

• paying for the cost of petrol used

• transporting a group of retired people on a day out

What is meant by 'labour' in economics ?

• Hard physical work used to produce manufactured goods

• human mental and physical effort used in producing goods and services

• natural resources used in the productive process

• risk taking and organising the factors of production

What does a production possibility curve to show?

• the maximum combination of two types of products that can be produced with given resources

• the prices of two types of products being produced

• the quantity of capital and consumer goods that people would like to be produced

• the relative profitability of capital and consumer goods

Which combination of economic concepts is illustrated by a production possibility curve?

• Cost and price

• Demand and price

• Economic goods and free goods

• Opportunity cost and scarcity

Four firms can produce soap and perfume. The table below shows the maximum number of bars of soap and bottles of perfume, that each firm can make each day if they speacialise in one type of product. Which firm has the lowest opportunity cost in producing perfume?

• Firm W

• Firm X

• Firm Y

• Firm Z