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4th Year Economics October Test

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Money that the government collects from individuals and businesses to pay for public goods and services

a)

Rand

b)

Tax

c)

dollar

d)

serving

2.

what do we call someone who took a risk and start a business?

a)

manager

b)

entrepreneurship

c)

entrepreneur

d)

enterprise

3.

What is the remuneration of an entrepreneur?

a)

profit

b)

wage

c)

salary

d)

rent

4.

Another name for natural resources

a)

land

b)

unnatural resources

c)

water

d)

air

5.

The study of factors of production falls under_

a)

economic pursuit

b)

contemporary economic

c)

microeconomics

d)

macroeconomics

6.

The definition of the law of diminishing marginal utility

a)

As more units are consumed the marginal utility falls.

b)

As more units are consumed the marginal utility increases.

c)

As price decreases quantity demanded increases.

d)

As price increases consumers are willing to pay more.

7.

The total utility definition states:

a)

The usefulness, benefit or satisfaction a consumer gains from life

b)

The satisfaction gained from consuming a quantity of an economic good, measured in utils.

c)

The added consumer satisfaction from consuming a quantity of a good.

d)

The consumer's satisfaction from consuming a quantity of a good.

8.

The wish to have something is_

a)

Desire

b)

Want

c)

Need

d)

Demand

9.

Willingness to pay for the want is_

a)

Need

b)

Desire

c)

Demand

d)

Show off

10.

If a consumer was to act rational, they would....

a)

will spend their income in such a way that they will achieve the most satisfaction from these goods and services

b)

see two identical products priced differently in two different shops they will buy the cheaper good

c)

will not demand something that does not provide satisfaction