10 IGCSE Economy Quiz (up to Section 4)

What is found in a competitive market?

• A. Every firm earns large profits.

• B. The costs of production are always lower than in a monopoly.

• C. Firms with limited capital can enter the market.

• D. There is limited choice for consumers.

Which event would cause an increase in demand for train tickets?

• A decrease in population

• An decrease in the price of bicycles

• An decrease in disposable income

• More advertising by the rail companies

Our inability to satisfy all our wants is called ___________.

• profit

• scarcity

• surplus

• wages

Because we face scarcity, we must make _____________.

• studies

• money

• profit

• choices

A(n) __________________ is a reward that encourages an action or a penalty that discourages an action.

• fine

• FOPs

• incentive

• human capital

The work time and work effort that people devote to producing goods and services is __________.

• labor

• land

• capital

• rent

The tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services are _____________.

• land

• capital

• entrepreneurship

• labor

The human resource that organizes land, labor, and capital is _________________.

• land

• labor

• capital

• entrepreneurship

Land earns ___________.

• interest

• rent

• wages

• profit

Labor earns ___________.

• wages

• profit

• interest

• capital