GCSE Economics Quiz

What is the central purpose of economic activity?

• To increase market competition

• To minimize production costs

• To maximize government revenue

• To produce goods and services to satisfy needs and wants

Which of the following is NOT a factor of production?

• Labor

• Land

• Technology

• Capital

What is the basic economic problem?

• Overconsumption

• Excessive production

• Scarcity of resources

• Unlimited resources

What is meant by 'opportunity cost'?

• The cost of labor

• The total cost of production

• The benefit of the next best alternative foregone

• The cost of producing one more unit

What is a characteristic of a competitive market?

• Few producers

• Price control by a single firm

• High barriers to entry

• Many producers

What is a monopoly?

• A market with perfect competition

• A market dominated by a single producer

• A market with no barriers to entry

• A market with many small firms

What is an externality?

• A tax imposed by the government

• A cost or benefit that affects a party who did not choose to incur it

• A subsidy given to producers

• A price set by the market

What is the role of the labor market?

• To allocate resources efficiently

• To control inflation

• To determine the price of goods

• To determine wages through supply and demand

What is the law of demand?

• As price increases, demand increases

• As price decreases, supply decreases

• As price decreases, demand decreases

• As price increases, demand decreases

What is a public good?

• A good that is excludable but non-rival in consumption

• A good that is non-excludable and non-rival in consumption

• A good that is rival but non-excludable in consumption

• A good that is excludable and rival in consumption