IGCSE Econ WB Unit 1&2

This exercise is based on some of the key terms used in economics. Match the following terms with their appropriate definitions. For instance, if you think an 'inability of workers to change jobs and location' defines 'scarcity', match 1 with c. Each term has an appropriate definition. If you find that you are left with a term and a definition which does not appear to match, you should review your other matches.

• Human made resources

• The economic problem

• Products people desire to have

• Capital

• Inability to produce everything that people want

• Wants

• Natural resources

• Land

One way to become familiar with key economic words and terms is to use them. This exercise is designed to test your understanding of some economic words and terms in context. So complete the following sentences by filling in the missing word or words. 1. It is not possible to eliminate ________________ as ________________ grow faster than economic resources.

• wants, wants

• needs, wants

• resources, needs

• goods, resources

The economic problem means that people have to make ________________ .

• choices

• mistakes

• predictions

• excuses

Most land is ________________ mobile but geographically ________________ .

• occupationally, immobile

• geographically, occupationally

• easily, permanently

• temporarily, spatially

If gross investment exceeds depreciation there is __________ investment.

• net

• zero

• negative

• fixed

__________ is the payment labour receives whilst __________ is the payment entrepreneurs receive.

• Wages, profit

• Profit, wages

• Rent, interest

• Interest, rent

A country's labour force can be increased by __________ the retirement age and __________ the school leaving age.

• raising, lowering

• lowering, raising

• lowering, lowering

• raising, raising

__________ is output whereas __________ is output per worker hour.

• Total, productivity

• Productivity, total

• Average, marginal

• Marginal, average

A key role of entrepreneurs is to bear __________ risks.

• uncertainty

• financial

• legal

• operational

Another name for a production possibility curve is an __________ cost curve.

• opportunity

• explicit

• fixed

• variable