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WorksheetsMicroeconomics Module 1
Total questions: 20
Worksheet time: 10mins
Scarcity is when
Unlimited wants is met with limited resources
Forcing to pick some choices and reject the rest
Choosing one alternative means giving up another
All of them
"What should be produced, who should produce and how to produce" -
Basic Economic questions
Because of scarcity
Opportunity cost
Question of choice
The concept of opportunity cost is the purchase price of an item
True
False
"Why do senior citizens in India get discount for using public transports?" What kind of problem is this?
Microeconomic
Macroeconomic
It is a social service issue.
"We should cut taxes in half to increase disposable income levels". This is an example of
Normative Statement
Positive Statement
None of the above
Normative statements are value judgments that cannot be tested.
True
False
Factors of production are the resources the economy has available to produce goods and services. What amongst these are NOT a factors of Production
Money
Land
Labour
Capital
Mercantilism can best be described as what?
The idea that a colony should be self sufficient and able to provide for itself
The idea that a nation needs to strongly equip its colonies to defend itself in case of foreign attack
The idea that the religion of a colony should differ from the religion of the mother country
The idea that a nation's power is related to its wealth and needs a favorable balance of trade with its colonies
Colonization supported the European economic policy of mercantilism by providing what?
a way to get rid of excess silver and gold
a place to store raw materials for future use
finished products to sell in Europe
a market for selling goods
The business endeavors in the English colonies in America led to the emergence of an economic system where most of the production was privately owned. What is the system called?
Mercantilism
Capitalism
Physiocrat
Socialism
What is capitalism?
government control of production and goods
private control of production and goods for profit
employee control of production, goods, and profit
international control of production and goods for profit
Which of the following was NOT a principle of mercantilism?
Export more than you import.
Import more than you export.
Settle in as many colonies as possible
Gain as much gold and silver as possible.
Who developed laissez-faire economics as an economic philosophy?
Adam Smith
Karl Marx
John Locke
Louis XVI
The idea of Laissez-faire most closely fits with which type of economic system?
Free Market Economy
Command Economy
Traditional Economy
Mixed Economy
True or False: Monetarism asserts that GDP will grow steadily if the money supply grows steadily.
True
False
Which of the following is NOT an economic assumption
Society's wants are limited and so are the resources
Choices need to be made due to scarcity
Everyone's goal is to maximize their satisfaction
Everyone acts rationally while making choices
The government has some control over the economy and provides basic services like health care and housing.
Capitalism
Socialism
Communism
Proponents of _________ believe every member of society should have equal access to wealth.
Utilitarian economy
Egalitarian economy
Mercantalist economy
Capitalist economy
Utilitarian economy ensures_____
Greatest happiness to greatest number of people
Personal freedom
equal treatment of all
fair opportunity
ONLY tax the landowners is ________ economic philosophy
Mercantalist
Communist
Physiocrat
Capitalist
