Free Printable The Basic Economic Problem

Worksheets

The Basic Economic Problem

Total questions: 20

Worksheet time: 12mins

Name

Class

Date

Why does scarcity exist?

Each year workers tend to produce less than previously

Machines wear out in time

There are not sufficient resources to meet everyone's wants

There is a limit to people's wants

Why will scarcity continue to be a problem in the future?

Prices will rise

Resources will always be finite

Needs will decrease in the future

World population will fall

What type of factor of production is a road?

Capital

Enterprise

Labour

Land

What is meant by 'labour' in economics?

Hard physical work used to produce manufactured goods

Human mental and physical effort used for producing goods and services

Natural resources used in the productive process

Risk taking and organising the factors of production

Which factor of production is the least mobile?

Capital

Enterprise

Labour

Land

Which of the following is a free good?

A vaccination provided by the state without charge

Prizes of food items given away by a supermarket

Recycled paper

Wind coming from the sea

What does a production possibility curve show?

The prices of two types of products being produced

The quantity of capital and consumer goods that people would like to be produced

The maximum combination of two types of goods that can be produced with given resources.

The relative profitability of capital and consumer goods

What does a point outside the PPC represent?

A currently unattainable position

An inefficient position

The maximum use of resources

Unused resources

Which of these is not a decision which is made to solve the basic economic problem?

What to produce

How to produce

Why to produce

For whom to produce

10.

What happens every time we make a decision?

We win!

We incur an opportunity cost

We incur an opportunity loss

We incur an opportunity cost of multiple other options

11.

Define opportunity cost

the value forgone from the all other alternatives

the value forgone from the next two best alternatives

the value forgone from the next best alternative

the value gained from choosing

12.

Which of the below is not scarce resource?

Oil

Sea water

Natural gas

Gold

13.

A market is

a place where buyers and sellers come together

a place where people can buy goods

a place where buyers and sellers come together and agree a price for the exchange of goods and services.

14.

The basic economic problem can never be eliminated.

true

false

15.

A need is

something we have to have in order to survive

something we have to have to make our life better

16.

A want is

something we have to have in order to survive

something we would like to have to make our life better

17.

Which are not a factors of production

land

rent

capital

interest

18.

_______ is another word for Market Economy.

Capitalism

Communism

19.

Which of the following would be an example of human capital?

The amount of workers who work in a Nike factory

The skills of the shoe designers at Nike

Philip Knight, the CEO of Nike

The land that the Nike headquarters is located on in Beaverton Oregon

20.

The difference between a good and a service is that:

Goods are available in unlimited quantaties and services are not

Goods are tangible and services are not

Services are available in unlimited quantaties and goods are not

goods help satisfy unlimited wants and services do not

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The Basic Economic Problem

Total questions: 20

Worksheet time: 12mins

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