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OCR GCSE Economics - Revision 1

Total questions: 35

Worksheet time: 25mins

Name
Class
Date
1.
Why does scarcity exist?
a)
Each year workers tend to produce less than previously 
b)
Machines wear out in time
c)
There are not sufficient resources to meet everyone's wants
d)
There is a limit to people's wants 
2.
What factor of production's function is to make decisions and take risks?
a)
Capital
b)
Enterprise 
c)
Land 
d)
Labour 
3.
What type of factor of production is a road?
a)
Capital
b)
Enterprise
c)
Labour
d)
Land 
4.
What is meant by 'labour' in economics?
a)
Hard physical work used to produce manufactured goods 
b)
Human mental and physical effort used for producing goods and services
c)
Natural resources used in the productive process
d)
Risk taking and organising the factors of production
5.

Which of these is not one of the key economic decisions?

a)

what to produce?

b)

how to produce?

c)

who is to benefit from the goods and services produced?

d)

how much to charge for the goods and services produced?

6.
 The difference between a good and a service is that:
a)
Goods are available in unlimited quantaties and services are not 
b)
Goods are tangible and services are not 
c)
Services are available in unlimited quantaties and goods are not 
d)
goods help satisfy unlimited wants and services do not
7.

What happens every time we make a decision?

a)

We win!

b)

We incur an opportunity cost

c)

We incur an opportunity loss

d)

We incur an opportunity cost of multiple other options

8.
What term describes the tools and technology used to make a product?
a)
capital goods
b)
human capital
c)
exports
d)
imports
9.

Which of these is a description of a 'trade-off'?

a)

Having more than you want, or need.

b)

When people work in jobs where they produce a few special goods, or services.

c)

When you get a little less of one thing in order to get a little more of something else.

d)

Something one person does for someone else.

10.

What is the world's 3rd largest economy?

a)

USA

b)

China

c)

UK

d)

Japan

11.

What is this?

a)

A supply curve

b)

A demand curve

c)

A supply shift line

d)

A demand shift line

12.

What does this show?

a)

A shift in supply

b)

An expansion of demand

c)

A shift in demand

d)

An expansion of supply

13.

What does this show?

a)

An increase shift in demand

b)

A decrease shift in demand

c)

An expansion of demand

d)

A contraction of demand

14.

The _______ considers the weighted averages of a group of consumer goods and services.

a)

Consumer price index

b)

Aggregate supply

c)

Producer price index

d)

Aggregate demand

15.

Which of the following causes of inflation is often described as “too much money chasing too few goods”?

a)

Demand-pull inflation

b)

Cost-push inflation

c)

Demand-push inflation

d)

Cost-pull inflation

16.

Fill in the blank: When inflation is high the _______________of the pound decreases.

a)

cost value

b)

purchasing power

c)

importance

d)

validity

17.
An index that measures the prices of a market basket of goods that typical consumers purchase.
a)
Consumer Price Index
b)
Federal Reserve
c)
Bank
d)
Deflation
18.

Which of the following groups DO NOT suffer from high inflation?

a)

Businesses

b)

Lenders

c)

Borrowers

d)

Consumers

19.
GDP that is adjusted for inflation
a)
real GDP
b)
nominal GDP
c)
price level
d)
net national product
20.

What causes cost-push inflation?

a)

An increase in demand for goods and services

b)

An increase in supply

c)

A rise in production costs passed on to consumers

d)

A fall in the price of imports

21.
Which one of these correctly describes how lenders and borrowers are affected by inflation?
a)
lenders hurt, borrowers helped
b)
lenders hurt, borrowers hurt
c)
lenders helped, borrowers hurt 
d)
lenders helped, borrowers helped
22.
How can we measure inflation?
a)
Money Supply
b)
Federal Reserve
c)
Interest Rates
d)
Consumer Price index
23.

Price stability occurs when

a)

Prices are rising rapidly

b)

Inflation is high

c)

There is significant deflation

d)

Price level in an economy does not change much over time.

24.

Wages rise by 3%, when inflation is 7%. Real wages

a)

are rising faster than inflation

b)

have fallen by 4%

c)

have risen by 10%

d)

have fallen by 7%

25.

The CPI is a weighted index, this means

a)

Some price changes are given more importance than others in the index

b)

All price changes are equally important

c)

price changes in energy would have less relevance than price changes of window cleaning

26.

Cassie is going to start a business and can buy either wood or cloth. If she buys wood, she can make toy boats. If she buys cloth, she can make dolls. What is the opportunity cost of Cassie’s buying cloth?

a)

The cost of making toy boats and dolls

b)

The opportunity to make toy boats

c)

The cost of starting a business

d)

The opportunity to make dolls

27.

Based on the map above, what is a major source of income for Ohio?

a)

Mining

b)

Tourism

c)

Industry

d)

Fishing

28.

Tom, the owner of Tom’s Pizza, recently bought a faster dough maker and a larger pizza oven for his shop. His sales have doubled. Which statement describes why Tom decided to buy a faster dough maker and larger pizza oven?

a)

As a producer, he invested in capital goods to increase production

b)

As a producer, he paid less for ingredients to make a profit

c)

As a consumer, he wanted to have a successful restaurant

d)

As a consumer, he wanted to spend less time cooking

29.

A company makes a popular fruit juice. It makes cough drops. A main ingredient in both products is oranges. Because of a drought, the company has enough oranges to produce only fruit juice or cough drops. The company chooses to make fruit juice. What is the opportunity cost of the company’s decision to make fruit juice?

a)

The demand for fruit juice will increase.

b)

The company will earn less money selling fruit juice.

c)

The farmers will decrease the amount of oranges that they grow.

d)

The company will be unable to earn money by selling cough drops.

30.

What does an increase in supply of an item usually mean for consumers?

a)

The item will be bought by fewer customers.

b)

The item will be removed from the market.

c)

The item will be difficult to buy.

d)

The item will be lower in price.

31.

A product that is brought into a country to be sold is called an import.

a)

True

b)

False

32.

Using income for purchases, expenses, and debt

a)

Spending

b)

Savings

c)

Services

d)

Goods

33.

The iPhone 7 came out a few years ago, the demand for it is down, so the price is now...

a)

Up

b)

Down

c)

The Same

34.

The class took a vote on their favorite sports and created a pie graph. How many total students are in the class?

a)

24

b)

25

c)

10

d)

28

35.

When you spend your money to buy a piece of candy, you are acting as a...

a)

Producer

b)

Importer

c)

Consumer

d)

Exporter