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7 EMS Revision: Production & Economic Growth

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

All of the economic inputs that are required to produce goods and services are called:

a)

Factors of production

b)

Supply

c)

Demand

d)

Capital goods

2.

The physical effort of people to produce goods or services describes which factor of production?

a)

Land

b)

Capital

c)

Labour

d)

Entrepreneurship

3.

The ideas and emotional drive a person has to produce something that other people will want to buy describes which factor of production?

a)

Capital

b)

Labour

c)

Entrepreneurship

d)

Land

4.

What is the best explanation of factors of production?

a)

Raw materials used to produce products

b)

Labour and materials

c)

Money and financing

d)

Resources used by a company to produce good and services

5.

Which of the following does not fall within the category of land as a factor of production?

a)

A building

b)

Trees

c)

Coal

d)

Water

6.

Iron, minerals, coal and plants are examples of which productive resource?

a)

Land

b)

Labour

c)

Entrepreneurship

d)

Capital

7.

Which factor of production would you consider a lawn mower?

a)

Land

b)

Labour

c)

Capital

d)

Entrepreneur

8.
Which factor of production would you consider a cow?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneur
9.
The people who grow or create goods are called...
a)
producers
b)
consumers
c)
banker
d)
traders
10.
The people who buy goods and services are called...
a)
producers
b)
consumers
c)
banker
d)
traders
11.

What does Gross Domestic Product

mean?

a)

The total value of all goods and services a country imports.

b)

The total value of all goods and services a country exports.

c)

The total value of all goods and services produced within a country in one year.

d)

The net loss in profits within a country due to imports.

12.

The___________ a country’s GDP, the better the country’s standard of living.

a)

lower

b)

greater

c)

smaller

d)

answers 1 and 3 are correct

13.

What are natural resources?

a)

resources that are gone from nature

b)

resources that are manufactured for the environment

c)

resources that are considered worthless

d)

materials or substances that occur in nature and can be used for economic gain.

14.

Why is it beneficial for a country to have an abundance of natural resources?

a)

countries that have a lot of natural resources are able to use them to produce goods and services cheaper than a country that has to import them. Therefore, a country with a lot of natural resources usually has a greater GDP than a country with little natural resources.

b)

countries with a lot of natural resources are usually taken over by other countries and don't have to worry about paying for anything

c)

they cannot become communist

d)

there is no advantage since most natural resources are worthless

15.

What are capital goods?

a)

goods that are produced in the capital

b)

the factories, machinery, and technology used to produce goods and services

c)

goods that are produced without natural resources

d)

goods that are produced by the government

16.

South Africa's economy expands at a rate of 3%. What necessarily follows from this statement?

a)

There was increased demand which caused inflation.

b)

The cost of living rose by 3%

c)

There was positive economic growth

d)

The output of the industrial sector rose by 3%

17.
Economic growth measures the
a)
a)     Growth of productivity
b)
b)     Increase in nominal income
c)
c)     Increase in output
d)
d)     None of the above
18.
Economic growth can be measured by
a)
a)     The CPI
b)
b)     The CBI
c)
c)     GDP
d)
d)     MPC
19.

What is productivity?

a)

working on products

b)

goods that are produced

c)

amount of goods or services workers can produce in a period of time

20.

Sustainability refers to the process of using resources so as not to....

a)

deplete them.

b)

re-use them.

c)

reduce them.

d)

recycle them.