Economics 1

Why does scarcity exist?

• Each year workers tend to produce less than previously 
• Machines wear out in time
• There are not sufficient resources to meet everyone's wants
• There is a limit to people's wants 

Why will scarcity continue to be a problem in the future?

• Prices will rise
• Resources will always be finite 
• Needs will decrease in the future 
• World population will fall 

What type of factor of production is a road?

• Capital
• Enterprise
• Labour
• Land 

What is meant by 'labour' in economics?

• Hard physical work used to produce manufactured goods 
• Human mental and physical effort used for producing goods and services
• Natural resources used in the productive process
• Risk taking and organising the factors of production

Which factor of production is the least mobile?

• Capital 
• Enterprise
• Labour
• 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

Which of the below is not scarce resource?

• Oil

• Sea water

• Natural gas

• Gold

The basic economic problem can never be eliminated.

• true
• false

A need is

• something we have to have in order to survive
• something we have to have to make our life better

A want is

• something we have to have in order to survive
• something we would like to have to make our life better