IGCSE Economics Unit 1: Revision Quiz

Why does the basic economic problem exist?

• Resources are unlimited

• Wants are unlimited and resources are scarce

• Governments create shortages

• Everyone has the same needs

Which is an example of a scarce resource?

• Air at sea level

• Land

• Sunshine

• Rainfall

Scarcity forces individuals and societies to:

• Produce without limits

• Make choices

• Avoid opportunity cost

• Eliminate trade

Resource allocation is about deciding:

• Who wants the most

• What to produce, how, and for whom

• How to avoid scarcity

• How to make resources infinite

An economy deciding to produce more hospitals instead of factories is an example of:

• Free good choice

• Resource allocation

• Scarcity removal

• No opportunity cost

Which factor does NOT affect resource allocation?

• Consumer demand

• Scarcity

• Unlimited resources

• Government policies

Which is a free good?

• Bottled water

• Air in the atmosphere

• Gold

• Electricity

Economic goods are:

• Free for everyone

• Scarce and have opportunity cost

• Unlimited in supply

• Never traded in markets

Which of these is NOT an economic good?

• Education

• Rainwater collected directly

• Healthcare

• Smartphones

What is the reward for labour?

• Rent

• Wages

• Profit

• Interest