Economics G7 exercise

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 

Which factor of production is the least mobile?

• Capital 
• Enterprise
• Labour
• Land 

Which of the following is a free good?

• A vaccination provided by the state without charge

• Prizes of food items given away by a supermarket

• Recycled paper

• Wind coming from the sea

Which of the below is not scarce resource?

• Oil

• Sea water

• Natural gas

• Gold

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

Resources (also know the factors of production) are ...

• Land and Labour

• Land and Capital

• Enterprise

• Land, Labour, Capital and Enterprise

Raw materials (i.e. cotton, oil...etc.) fall under which category

• Land

• Labour

• Capital

• Enterprise

The people who bring all the factors of production together to create a new product or service is ...

• Land

• Labour

• Capital

• Enterprise

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget

The basic economic problem is concerned with

• maximizing satisfaction

• Limited resources

• limited wants alone

• how best to allocate scarce resources in order to satisfy people’s unlimited needs and wants