BASIC 9 ECONOMICS PLACEMENT TEST

Economics can be best defined as the study of

• how to spend the family income efficiently.

• how to find minimum cost of production.

• the interpretation of scarce resources and data.

• how scarce resources can be used efficiently

Choice is necessary because resources

• are available

• can be found everywhere.

• are unlimited

• are scarce

Economics is a social science because it

• deals with an aspect of human behaviour.

• provides people with the commodities they want.

• deals with limited resources which have alternative uses.

• is related to how choice is made.

Scarcity in Economics generally refers to

• a period of production.

• hoarding of goods.

• a period of famine.

• resources being limited

In Economics, production is complete when

• goods are produced in factories.

• goods are sold to wholesalers.

• goods and services reach the consumers

• goods are sold to retailers.

Scarcity in Economics arises because

• the resources available are adequate.

• individuals have limited time.

• resources are limited in supply.

• human beings have limited wants.

The document that shows evidence of payment of a business transaction is

• credit note

• invoice

• journal proper

• receipt

The basic problem that Economics attempts to solve is the

• ranking of goods and services

• pricing of goods and services

• scarcity of resources

• foregoing of alternatives

The ranking of a consumer's needs in order of importance is termed

• an opportunity cost

• economies of scale

• a scale of preference

• the making of choice

Economic problems arise because

• resources are scarce relative to wants.

• man is insatiable

• money is scarce.

• man engages in too many economic activities.