NEW
Font size
WorksheetsTry1
Total questions: 14
Worksheet time: 14mins
Scarcity is a problem:
that only poor people face.
because human wants are limited while resources are unlimited.
because human wants are unlimited while resources are limited.
only in third world countries.
Scarcity is a situation:
where people’s needs exceed their resources.
where people’s wants exceed their resources.
where the quantity of resources is sufficient to meet all wants
where people’s needs exceed other people’s resources.
where the quantity of resources is sufficient to meet all needs.
Labour, land and capital are called:
goods and services.
entrepreneurship.
outputs.
factors of production.
Which of the following is not a resource?
Land.
Labour.
Money.
Capital.
The central question in economics is how to:
deal with the problem of scarcity.
change government economic policy.
change people’s wants to match their needs.
manage money and become wealthy.
The most fundamental concepts underlying the discipline of economics are:
scarcity and making an efficient choice.
supply and demand.
money, stocks and bonds.
inflation and unemployment.
Which of the following is a microeconomics topic?
The unemployment rate.
The inflation rate.
The economy’s growth rate.
The price of apples.
Forecasts of a recession next year.
Which of the following is included in the study of macroeconomics?
How households make a purchasing decision.
Market for laptops.
Flows of imports and exports.
Prices of cars.
The ‘For whom to produce’ question:
is irrelevant in economics.
means that society must ask whether government should override the market outcomes.
is the most important question in economics.
means that government should not intervene in market outcomes.
The production possibilities frontier shows that:
scarcity can be eliminated.
all output combinations are possible
an economy that is operating efficiently can have more of one good without giving up some of another good.
some of one good must be given up to get more of another good in an economy that is operating efficiently.
Production possibilities frontier analysis allows us to identify:
minimum possible combinations of goods and services.
ways to eliminate scarcity.
total benefits of production.
inefficient production.
A point outside a production possibilities curve reflects:
efficiency.
an impossible choice.
inefficiency.
unemployment.
Which of the following moves from one point to another in Exhibit 2.7 would represent an increase in economic efficiency?
Z to W.
W to Y.
Z to X.
X to W.
The production possibilities in Exhibit 2.2 indicates that the opportunity cost of corn is:
increasing.
decreasing.
does not change
zero.
