IGCSE Economics Quiz

Which of the following best describes the role of an entrepreneur in the economy?

• To provide labor to businesses

• To manage and organize resources in order to produce goods and services

• To set government policies on business

• To create laws regulating businesses

An entrepreneur is someone who:

• Works for a large corporation and does not take any business risks

• Starts and operates their own business, taking on financial risks

• Provides labor to other businesses in exchange for wages

• Organizes public services and institutions for government benefit

Which of the following is a characteristic of a successful entrepreneur?

• Strong preference for job security

• Willingness to take calculated risks

• Reluctance to work long hours

• Focus on avoiding competition

Opportunity cost is best described as:

• The amount of money spent to produce a good or service

• The value of the next best alternative foregone when making a decision

• The cost of training workers for new skills

• The financial loss incurred when a business fails

If you decide to spend your money on a concert ticket rather than saving it for a new phone, what is your opportunity cost?

• The price of the concert ticket

• The enjoyment you get from attending the concert

• The new phone you could have bought instead

• The time spent at the concert

Which of the following is an example of opportunity cost in a business decision?

• Choosing to invest in new technology instead of spending money on marketing

• Hiring more employees to increase production

• Cutting prices to attract more customers

• Increasing advertising to raise brand awareness

Which of the following is considered a basic need?

• A smartphone

• A laptop

• Clean water

• A designer handbag

Wants can be defined as:

• Things necessary for survival

• Items required to achieve basic health

• Desires for goods and services that are not essential

• Products and services that must be provided by the government

Which of the following is an example of a want rather than a need?

• Shelter

• Food

• A luxury car

• Clothing

Scarcity exists because:

• Resources are unlimited

• People can freely access all goods and services

• There are limited resources available to satisfy unlimited wants

• Governments regulate the allocation of resources