CSEC Econ Section 1

Economics can be defined as

• the analysis of historical economic trends
• the study of financial markets and investments
• the examination of government policies on trade
• a social science that studies how societies use scarce resources to produce valuable commodities and distribute them among different people

If I had to choose between a new phone and a new laptop and I chose the laptop, the opportunity cost would be

• the time spent choosing
• the cost of the laptop
• the price of accessories for the phone
• the value of the new phone

The central economic problem is

• economic growth
• scarcity of resources
• unlimited wants
• abundance of resources

Which of the following is an example of a want

• Shelter

• Clothing

• Food

• A new smartphone

The shape of the graph suggests what type of opportunity cost?

• Zero opportunity cost
• Increasing opportunity cost
• Decreasing opportunity cost
• Constant opportunity cost

The shape of the graph suggests what type of opportunity cost?

• Decreasing opportunity cost
• Constant opportunity cost
• Increasing opportunity cost
• Zero opportunity cost

The shape of the graph suggests what type of opportunity cost?

• Increasing opportunity cost
• Decreasing opportunity cost
• Variable opportunity cost
• Constant opportunity cost

Which point is considered to be efficient ?

• X

• A

• C

• 0

The combination at Point C is considered to be

• Attainable

• Efficient

• Inefficient

• Unattainable

Which point on the diagram would be considered inefficient?

• C
• Y

• X

• A