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WorksheetsEconomics
Total questions: 20
Worksheet time: 20mins
Why does scarcity exist?
Each worker tend to produce less than previously.
Machines wear out with time.
There are not sufficient resources to produce all the products people want.
There is a limit to people's wants.
Why will scarcity continue to be a problem in the future?
Prices will rise.
The quantity of resources will decline.
Wants will continue to increase.
World population will fall.
Which factor of production's function is to make decisions and take risks?
Capital
Enterprise
Labour
Land
Which type of factor of production is a road?
Capital
Enterprise
Labour
Land
A country produces 3000 new capital goods in a week. 500 of these replace worn out capital goods. What is the net investment made?
500
2500
3000
3500
Which factor of production is the most mobile?
Capital
Enterprise
Labour
Land
What is meant by 'opportunity cost'?
The best alternative forgone.
The cost of the item selected.
The cost of exploring business opportunities.
The labour used in producing the product.
A person decides to go to the university for three years, to study economics. If he had not gone, he could have taken a job which he would have paid him $15,000 a year. After he graduates he expects to find a job paying him $40,000 a year. What is the opportunity cost of going to the university for him?
$15,000
$40,000
$45,000
$125,000
Which of the following is a free good?
Inoculation provided without charge by the state.
Prizes of food items given away by a supermarket.
Recycled paper.
Wind coming in from the sea.
What are the three questions faced by all economies?
What to produce, when to produce it and who receives it
What to produce, how to produce it and who receives it
Where to produce, how to produce and when to produce
Where to produce, when to produce and how to produce
How are resources allocated in a market economy?
By directives
By the price mechanism
By directives or the price mechanism
By directives and the price mechanism
What is an advantage of a market economy?
An absence of poverty
Consumer sovereignty
Firms having considerable market power
Full employment
What is an argument for state intervention in an economy?
To encourage the consumption of harmful products
To increase the role of the price mechanism in allocating resources
To make the distribution of income more uneven
To prevent private sector firms over overcharging consumers
What is the relationship between demand and price and the relationship between supply and price?
Directly related in demand and price, directly related in supply and price
Directly related in demand and price, inversely related in supply and price
Inversely related in demand and price, directly related in supply and price
Inversely related in demand and price, inversely related in supply and price
What happens to people's willingness and ability to buy a product when its price falls?
Willingness increases, ability increases
Willingness increases, ability decreases
Willingness decreases, ability decreases
Willingness decreases, ability increases
Why does a market supply curve show?
The proportion of total output produced by different firms in the industry
Proportion of total output sold
The relationship between the total quantity supplied and demand for the product
The relationship between the total quantity supplied and the price of the product
Equilibrium price is the price at which:
everything that is produced is sold
the amount consumers demand is equal to the amount sellers supply
the number of buyers equals the number of sellers
supply exceeds demand
An increase in demand is represented by:
a movement down the demand curve
a movement up the demand curve
a shift to the left of the demand curve
a shift to the right of the demand curve
What would cause an increase in the supply of milk?
An increase in the price of cattle feed
An increase in wages paid to farm workers
The introduction of a subsidy to cattle farmers
The outbreak of a disease affecting cows
The price of a product rises. What will happen to the demand for its complement?
It will contract.
It will extend.
It will decrease.
It will increase.
