Project A Economics revision

Which of the following is not regarded as being a 'factor of production'?

• money

• machinery

• land

• workers

The opportunity cost of producing a given product is:

• the price of the product

• the best alternative product that could have been purchased

• the price paid for the resources used in the production of the product

• the value of the best foregone alternative which the resources used could have produced

Relative scarcity in economics mean that

• the demands placed upon resources are very high

• the demands placed upon resources are excessive when compared to the availability of those resources

• resources available for use in production are limited

• economies experience shortages of all factors of production

A business has narrowed down the most viable investment options to (1) the construction of a new mine costing $100 million and (2) the purchase of a $100 million shareholding in a foreign mining firm. The opportunity cost associated with the construction of a new mine is

• the $100 million spent on the construction of the mine

• the benefits that would have been provided by the $100m shareholding

• both of the above

• unknown since insufficient information is given

Economics can be best defined as the study of

• resource allocation in a market capitalist economy

• how scarce resources are allocated in an economy

• how government and households influence business decision making

• how limited wants affect an abundance of resources

Which of the following statements is true?

• Microeconomics is concerned chiefly with the economy as a whole.

• Macroeconomics is concerned chiefly with individual markets.

• Microeconomics often studies how particular firms, specific industries and individual markets operate.

• Governments have no influence over market prices.

The purchase by a business of robots and an advanced computer system is classified as

• labour resource

• natural resource

• capital resource

• entrepreneurship

Iron ore, forest and water are the examples of which factors of production?

• labour

• machinery

• capital

• land