Class 9

The book principle of economics is written by (a)  

Who is father of economics?

• Alfred Marshal

• Adam Smith

• Samuelson

• Robbin

Goods like ornaments, electronic gadgets and branded clothes are example of

• Capital goods

• Consumer goods

• Necessities

• Luxurious

In recent years more golf courses, which use large quantities of water, have opened in China. What is the opportunity cost of this?

• cost of water

• loss of farmland

• sales of golf equipment

• wages of golf course staff

What is an example of the purchase of a capital good?

• a farm owner purchasing additional land

• a farm owner purchasing a television

• a farm owner purchasing a tractor

• a farm worker purchasing some seeds

What does an economist mean by the factor of production called capital?

• goods that can be used to produce other goods

• money used to start a business

• money used to start a business

• the profits of a company

Economics textbooks identify the existence of scarcity as the basic economic problem. What is it that makes scarcity a problem?

• It can cause inflation and unemployment.

• It is impossible to satisfy unlimited wants.

• It is the first priority of governments

• It only affects the richest countries.

Economics is concerned with each of the following EXCEPT?

• Allocation of scarce resources to produce goods and services

• Explaining what factors influence consumer behaviour

• Yoga

• Choice

Friendship would be considered a(n) __________ want.

• economic

• limited

• noneconomic

• unlimited

John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?

• New pair of jeans

• $40

• No opportunity cost was involved.

• Trip to amusement park