Economics B 1.1.1

What does the term "consume" mean in economics?

• To purchase goods or services

• To use something, such as eating an apple or riding a bike

• To produce goods or services

• To sell goods or services

What are the four factors used in production according to the resources box?

• Land, labor, capital, and government

• Land, labor, capital, and enterprise

• Land, labor, technology, and enterprise

• Land, management, capital, and enterprise

What is the basic economic problem?

• The wants of people are finite and resources are infinite

• The resources are finite but the wants of people are infinite

• The resources and wants of people are both infinite

• The resources and wants of people are both finite

What is "opportunity cost"?

• The cost of purchasing an opportunity

• The benefit gained from the next best alternative that is not chosen

• The total cost of all opportunities available

• The cost of the opportunity that is chosen

According to the text, what is scarcity?

• The abundance of resources to satisfy wants

• The limited wants compared to available resources

• The excess of want over what the resources available can produce

• The equal distribution of resources and wants

What is the basic economic problem?

• How to spend free time

• How to provide better pension schemes

• Scarcity and making choices

• Deciding what movie to watch

What is the private benefit of choosing to spend £10 on an economics and business revision book?

• Gaining knowledge that could help in studies

• Enjoying leisure time at the cinema

• Saving money for future use

• Improving NHS services

What is your opportunity cost if you decide to spend £10 on a cinema ticket instead of the revision book?

• The enjoyment of watching a film

• The £10 spent

• The knowledge gained from the revision book

• The time spent at the cinema