Economics Quiz

Which statement about the factors of production is correct?

• Capital is a financial resource and includes savings in banks.

• Enterprise is limited in supply and includes office workers.

• Labour is a human resource and includes pensioners and children.

• Land is a natural resource and includes trees and fish.

A builder spends one hour travelling to and from work. He works 40 hours per week for $200. He is given a choice to work 50 hours a week for an extra $75.

 

What would be the opportunity cost to the builder of working the extra hours?

• the ability to increase his purchasing power

• the additional time travelling to and from work

• the increased hourly earnings of $7.50

• the ten hours of leisure time

Which point represents the country's production immediately after the disaster?

• B

• C

• A

• D

What is included in microeconomics?

• the calculation of national income and expenditure

• the effects of a change in exchange rates on the trade balance of an economy

• the effects of an increase in the price of a good or service

• the factors leading to demand-pull inflation

What is an economist's definition of a market?

• a collection of informal retail outlets run by small firms

• a place where traders gather regularly for short periods

• a system that enables individuals and firms to buy and sell goods

• the existence of consumer demand for a good

What is an example of an external benefit from an individual cycling, rather than driving, to work?

• higher cost of building cycle lanes

• improved physical fitness to the individual from cycling

• lower cost of cycling compared with driving to work

• reduced congestion for other road users

It is expected that consumers will use less paper money. What is the most likely reason for this?

• Inflation reduces the value of paper money.

• More ways of making payments will be available.

• Other forms of money are more durable.

• Paper money will have less intrinsic value.

In low-income countries, fewer girls than boys become skilled design engineers. What might explain this situation?

• Girls are only interested in low-wage jobs.

• Girls do not favour heavy manual work.

• Girls have fewer opportunities to complete higher education.

• It costs more for girls to be trained as design engineers.

What would an economist regard as an example of the factor of production capital?

• an individual's purchase of stocks and shares

• borrowing by a firm to pay for electricity

• the building by a firm of a new factory

• total savings by individuals in a country

Why is the curve usually drawn like this?

• International free trade exists.

• Opportunity cost changes.

• Resources are unlimited in supply.

• Some resources will be unemployed.