Year 10 Humanities Exam 2025 Study Questions

What is the basic economic problem that economics tries to address?

• Scarcity and choice, because resources are limited but human wants are unlimited.

• How to make as much money as possible, because everyone wants to be rich.

• The need for more technology, because machines can solve all problems.

• The importance of government control, because only governments can make decisions.

Which of the following best describes opportunity cost?

• The value of the next best alternative that is given up when a choice is made.

• The total amount of money spent on a project.

• The time it takes to produce a good or service.

• The profit made from selling a product.

Scarcity forces every economy to answer three key questions. Which of the following is NOT one of those questions?

• How much profit to make?

• What to produce?

• How to produce?

• For whom to produce?

Which of the following is an example of opportunity cost?

• A government spends money on healthcare and has less to spend on education.

• A business hires more workers to increase production.

• A company buys new machines to improve efficiency.

• A student studies for an exam to get better grades.

Which of the following is NOT a factor of production?

• Advertising (Promoting products)

• Land (Natural Resources)

• Labour (Human Effort)

• Capital (Tools and Machines)

A shoe company uses leather, factory workers, sewing machines, and a business owner. If the owner cuts back on labour, what is a likely result?

• Production might slow down, quality could drop, and profits could fall.

• The company will automatically make more shoes.

• The business will not need any more resources.

• The price of shoes will always increase.

Why is understanding opportunity cost important for economists and policymakers?

• It helps them make better decisions about how to use resources efficiently.

• It allows them to avoid making any choices.

• It guarantees that everyone will be satisfied.

• It ensures that resources are unlimited.

Which economic system is characterized by decisions based on customs and traditions, with roles inherited and little change over time?

• Traditional economy

• Command economy with government planning

• Market economy with private businesses

• Socialist economy with some private property

What is a key strength of a traditional economy?

• Community-focused and predictable

• Quick decisions and focus on national goals

• Innovation and efficiency

• Freedom and consumer choice

In a command economy, who makes all economic decisions?

• The government

• Individuals and businesses

• Tribal leaders

• Consumers