Gr. 9 Business: Chapter 1 & 2

Which of these is the best definition of the "economic problem"?

• People who do not have enough money

• There are not enough resources to satisfy people's unlimited wants

• There are not enough wants for the unlimited resources to satisfy

• There are too many factors of production

Which of the following is NOT a factor of production?

• Oil reserves

• Factory buildings

• Skilled labour

• Music CDs

If I buy a book for $10, then the opportunity cost is:

• everything else I could have bought with the $10

• $10

• the benefit lost from not being able to consume the next best option

• the benefit gained from buying the book

Making choices is necessary in all economic systems because:

• there are so many products that we cannot use them all at once

• the government has so much money that it does not know what to do with it

• there are so many resources compared to people's needs that we have to choose which ones not to use

• there are so many wants compared to scarce resources that we have to decide what to produce

Division of labour can be defined as:

• workers specialise on just one task and become more effecient at it

• workers become specialists in all jobs

• all firms only have one worker so jobs are divided between the firms

• no workers are employed as machines do all the work

One of the drawbacks to specialisation is that:

• output and efficiency falls

• workers spend time on training to do several different jobs

• workers can become bored through only concentrating on one job

• no machinery is used which saves on business costs

One of the benefits of specialisation is:

• output and efiiciency increases

• workers are able to undertake a range of tasks

• no machinery is used which saves on business costs

• workers do not have to spend time training to do a particular task

The best definition of a business is an organisation that:

• is owned by the government

• buys products from other firms and sells them to consumers for a profit

• produces only those goods and services that satisfy people's basic needs

• combines the factors of production to make products that satisfy people's wants.

Which one of the following is the best definition of added value?

• It is the difference between the prices of the different products

• It is the difference between the total costs of a business and the total value of what it sells

• It is the difference bwteen the price of a product and the cost of the bought in materials to make it.

• It is the difference between the price of a product and the value of it.

If a tailor buys in cloth for $25 and makes a suit that he sells for $65, then he has:

• made a profit on the suit of $40

• added $40 of value to the material

• incurred no opportunity cost on the suit

• used his own labour as the only factor of production in making the suit