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1. Economic Methodology - Year 1

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

In a free market economy, the economic problem of what goods should be produced is usually solved by

a)

consumers expressing their tastes and preferences in their pattern of spending.

b)

consumers expressing their tastes and preferences in their pattern of spending.

c)

firms planning their activities to meet production targets set by government.

d)

firms planning their activities to meet production targets set by government.

2.

Which one of the following is a positive economic statement?

a)

The pattern of wealth ownership in the UK is unfair.

b)

There are too many poor people in the UK today.

c)

The distribution of income in the UK is unequal.

d)

The rich should be taxed more than the poor.

3.

Which one of the following would be classified by an economist under the factor of production known as land?

a)

a tractor

b)

a chemical fertiliser

c)

fish in the ocean

d)

a farmer

4.

Which one of the following would be classified by an economist as an example of the factor of production known as capital?

a)

A delivery van

b)

Stocks and shares

c)

Savings in the bank

d)

Underground reserves of coal

5.

A positive statement in economics is always

a)

capable of being tested.

b)

based upon an opinion.

c)

based upon numerical data.

d)

correct.

6.

The central purpose of economic activity is

a)

to create maximum profit.

b)

the satisfaction of needs and wants.

c)

to achieve economic efficiency.

d)

to save scarce resources.

7.
a)

Only W and Y

b)

Only V, W and X

c)

Only V, W, X and Y

d)

V, W, X, Y and Z

8.

The fundamental economic problem facing all societies is

a)

what, how and for whom goods and services should be produced.

b)

the existence of unemployed resources.

c)

the existence of unemployed resources.

d)

inequalities in the distribution of income and wealth.

9.
a)

V to W

b)

V to X

c)

X to Y

d)

X to Z

10.
a)

OJ.

b)

JK.

c)

OF.

d)

KL