Font size
S
M
L
XL
WorksheetsGWC N5 Economics Revision End of S3 unit 1
Total questions: 46
Worksheet time: 23mins
Name
Class
Date
1.
Opportunity costs is
a)
making the wrong decision
b)
the sacrifice of the next best alternative foregone
c)
chosing one thing over another
d)
not having enough money to do everything you want
2.
A market is
a)
a place where buyers and sellers come together
b)
a place where people can buy goods
c)
a place where buyers and sellers come together and agree a price for the exchange of goods and services.
3.
The basic economic problem is
a)
unlimited wants
b)
limited resources
c)
scarcity
d)
greed
4.
The basic economic problem can never be eliminated.
a)
true
b)
false
5.
A need is
a)
something we have to have in order to survive
b)
something we have to have to make our life better
6.
A want is
a)
something we have to have in order to survive
b)
something we would like to have to make our life better
7.
Which is not an example of a need
a)
water
b)
clothing
c)
a holiday abroad
d)
shelter
8.
Which are not a factors of production
a)
land
b)
rent
c)
capital
d)
interest
9.
Which are rewards to the factors of production.
a)
rent
b)
land
c)
capital
d)
interest
10.
Which is the reward to land
a)
capital
b)
rent
c)
interest
d)
wages
11.
Productivity is…
a)
where each worker specialises in one task
b)
adding foxed costs and variable costs
c)
how much output can be produced per unit of input in a certain time
12.
Short run is when…
a)
all inputs are variable
b)
at least one input is fixed while others are variable
13.
Fixed costs
a)
vary with output
b)
stay the same regardless of output
14.
Variable costs
a)
change with output
b)
stay the same regardless of output
15.
Total costs is
a)
fixed costs plus variable costs
b)
fixed costs - variable costs
c)
fixed costs divided by variable costs
16.
Average fixed costs is
a)
total fixed costs divided by output
b)
output divided by variable costs
c)
fixed costs divided by variable costs
17.
Average variable costs is
a)
output divided by fixed costs
b)
output divided by variable costs
c)
fixed costs divided by variable costs
d)
variable costs divided by output
18.
Total revenue is
a)
selling price X number of units produced
b)
selling price X number of units sold
19.
Profit is when
a)
Total revenue - total costs is greater than zero
b)
total revenue - total costs is less than zero
c)
total revenue - total costs is equal to zero
20.
Average revenue is
a)
total output divided by total revenue
b)
total revenue divided by total output
21.
Examples of fixed costs are
a)
rent and wages
b)
rent and salaries
c)
rent and insurance
22.
Examples of variable costs are
a)
wages
b)
salaries
c)
raw materials
23.
Specialisation is when each worker carries out one particular task
a)
true
b)
false
24.
Division of labour is when each worker carries out one particular task
a)
true
b)
false
25.
Effective Demand is the quantity that consumers are willing and able to buy at a given prive in a given time period.
a)
true
b)
false
26.
Market demand is the demand of just one consumer
a)
true
b)
false
27.
The law of demand states that the demand for a product does not vary inversly with its price
a)
true
b)
false
28.
The demand curve slopes downwards from left to right
a)
true
b)
false
29.
Utility is…
a)
how much someone dislikes a product
b)
the satisfaction someone gains from consuming a good or service
30.
The more we consume of something total utiliity rises but at a slower rate
a)
true
b)
false
31.
marginal utility is…
a)
the total utility a person receives
b)
the extra satisfaction gained from consuming consecutive units of a good or service
32.
The less extra satisfaction you get from consuming a good, the more you'd be willing to pay for it
a)
true
b)
false
33.
As the price of a good rises a persons purchasing power increases
a)
true
b)
false
34.
As the price of a good rises consumers will switch to the now cheaper alternative. This is the…
a)
Income effect
b)
Substitution effect
35.
Any change in price will shift the demand curve to the left or right.
a)
true
b)
false
36.
A decrease in price causes an extension along the demand curve
a)
true
b)
false
37.
An increase in price causes a shift to the left of the demand curve
a)
true
b)
false
38.
An increase in price will cause the quantity demanded to rise
a)
true
b)
false
39.
An increase in price will cause a contraction along the demand curve
a)
true
b)
false
40.
Any factor other than price will cause a shift in the demand curve
a)
true
b)
false
41.
A very hot summer will cause the demand for sunglasses to shift to the…
a)
right
b)
left
42.
Is is now not fashionable to wear skinny jeans. Which way will the demand curve shift?
a)
right
b)
left
43.
Population in Scotland has increased. What will happen to overall demand for goods and services?
a)
shift left
b)
shift right
44.
Complimentary goods are in joint demand
a)
true
b)
false
45.
If the price of a complimentary good rises, which way will the demand for the other good go?
a)
Right
b)
left
46.
If peoples incomes rise, will demand for holidays go left or right?
a)
left
b)
right
Reset
