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WorksheetsEconomics Markets and Models
Total questions: 10
Worksheet time: 5mins
The basic economic problem arises because:
Wants are unlimited and the means of satisfying them are relatively scarce
Various countries have different types of economies
Different people have quite different needs
Human behaviour is unpredictable
An increase in injections into the Circular Flow Model for the Australian economy can be caused by
An increase in government spending on welfare payments
An increase in consumer spending on Japanese motor vehicles
An increase in income taxes
An increase in interest rates
The four factors of production are:
Wages, social welfare, interest and commission
Wages, rent, interest and profit
Land, capital, labour and enterprise
Land, labour, consumption and enterprise
If leakages in an economy become greater than injections
The level of economic activity will increase
The level of economic activity will decrease
The level of economic activity will be unchanged
The government will need to run a budget surplus
In economics, capital resources are:
The funds people invest in a business
The finance provided by a foreign company to an Australian company
Any resources other than labour resources
Goods used by humans and used in the process of production
On the graph if an economy is operating at point Y on the PPC it is said to be:
resources are being fully employed.
it prefers services over goods.
Current output levels are higher than either Z or X.
Resources are under utilized
Which of the following is an example of a planned economy
Australia
France
Cuba
South Korea
Using the Production table what is the opportunity cost of making 3 boats
8 Cars
3 Boats
12 Cars
2 Boats
In the circular flow model imports and savings are considered
injections
good for business
leakages
equal to exports
During a recession a government will
decrease interest rates
decrease taxes and increase expenditure
do nothing
increase taxes and decrease expenditure
