Section 1 The Basic Economic Problems

What is the basic economic problem faced by all societies ?

• Achieving happiness

• An inefficient economic system

• Rewarding factors of production

• Scarcity of resources

Which product is most likely to be classified as a free good?

• Birthday presents

• Public transportation

• Seawater

• State (government-funded) education

Which of the following statements belong to the public sector?

• Coca cola, Car manufacturer, State education, Mc. Donalds

• National defence, National health services, State education, State prisons

• Car Manufacturer, Apple Inc, P&G company, Indofood company

• National Defence, State education, Mc. Donalds, Burger King

Which of the following statements belong to the private sector ?

• Private Education

• State Education

• National Defence

• National Health Service (NHS)

How best to allocate scarce resources in order to satisfy people's unlimited needs and wants is the definition of...

• Scarcity

• The basic economic problem

• Resources allocation

• Economic agents

Which of the following statements are economic goods ?

• Oil

• Sunlight

• Air

• Houses

Economics is the study of how the world's resources are allocated to competing uses to satisfy the ..........needs and wants of the main agents in an economy

Which option is not an example of capital as a resource?

• Computers

• Factory

• Machinery

• Natural Resources

Which event is most likely to cause an increase in the average wage of labour?

• A decrease in the national minimum wage

• An increase in the national minimum wage

• Government tax policies

• Net migration of labour into the country

As a factor of production, fish in the ocean would be best referred to as

• Land

• Labour

• Capital

• Enterprise