TMA 1: Introduction to Economics MCQ

What is the definition of opportunity cost?

• The price of a good or service

• The next best alternative given up when a choice is made

• The cost of resources used

• The total cost of production

Which of the following is an example of a public good?

• Healthcare

• Private schools

• Sea defences

• Luxury cars

What does non-excludability mean?

• A good is only available to certain consumers

• A good is available for free

• Once a good is provided, others cannot be prevented from benefiting

• Consumers can be prevented from using a good

Which of the following is a characteristic of private goods?

• Non-rival and excludable

• Rival and excludable

• Non-rival and non-excludable

• Rival and non-excludable

What is the basic economic problem?

• Unlimited resources and limited wants

• Scarce resources and unlimited needs and wants

• High demand and low supply

• Excessive production of goods

What is meant by geographical mobility of labor?

• The skill level of workers

• The ability to work from home

• The willingness to move for employment

• The ability to switch jobs easily

Which of the following is an example of an economic good?

• A smartphone

• Sunlight

• Sea water

• Clean air

What is the payment made to land called?

• Profit

• Rent

• Interest

• Wages

What does the term 'scarcity' refer to?

• High demand for goods

• Limited resources in supply

• Excessive production

• Abundance of resources

What is the main benefit of specialization?

• Less competition

• Increased efficiency and quality

• More variety of products

• Higher prices for goods