MCQ Basic economic problem

A free good would be one that is superabundant so that there is no sacrifice incurred in using it

• True

• False

Labour is responsible for bringing together land, capital and enterprise

• True

• False

The basic economic problem can never be eliminated.

• true
• false

$2bn is invested in developing a country’s natural resources and infrastructure.

Which two factors of production does this refer to directly?

• capital and labour

• capital and land

• enterprise and land

• labour and land

Which of these is not a decision which is made to solve the basic economic problem?

• What to produce

• How to produce

• Why to produce

• For whom to produce

Define opportunity cost

• the value forgone from the all other alternatives

• the value forgone from the next two best alternatives

• the value forgone from the next best alternative

• the value gained from choosing

Which of the below is not scarce resource?

• Oil

• Sea water

• Natural gas

• Gold

What is most likely to reduce the supply of factors of production in an economy?

• increasing the age of retirement

• introducing new methods of irrigation

• lowering the cost of borrowing from banks

• raising the rate of tax on profits

A power station was built to provide electricity to rural villages in Namibia. What was its opportunity cost?

• the cost of producing the electricity

• the school which could have been built instead

• the time given up the architect to design the power station

• the benefits enjoyed from the power station

What factor of production's function is to make decisions and take risks?

• Capital
• Enterprise 
• Land 
• Labour