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Introduction

Total questions: 25

Worksheet time: 14mins

Name
Class
Date
1.

When people need to make economic choices due to a lack of available goods and money, this is called _________________________ in economic terms.

a)

trade offs

b)

scarcity

c)

opportunity cost

d)

incentive

2.
A maker of goods or services is called what?
a)
Producer
b)
Consumer
c)
Salesperson
d)
That guy
3.

What are the 4 Factors of Production?

a)

Land, capital, money, entrepreneurs

b)

Land, capital, labor, entrepreneurship

c)

Capital, money, supply, demand

d)

Labor, capital, supply, demand

4.
What does point X represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
5.
What does point B represent?
a)
Production at greater than the country's minimum potential
b)
Production is less than the country's minimum potential
c)
Production is greater than the country's maximum potential
d)
Production at the country's maximum potential
6.
What is a PPC?
a)
Possible Production Curve
b)
Production Possibilities Curve
c)
Probable Projection Curve
d)
Projected Possibilities Frontier
7.
The branch of economics that studies national and international economies.
a)
Scarcity
b)
Marginal
c)
Microeconomics
d)
Macroeconomics
8.

What is the opportunity costs of going from Point D to Point B?

a)

11 public goods

b)

9 private goods

c)

18 public goods

d)

22 private goods

9.

These are unlimited and ever changing?

a)

Scarcity

b)

Factors of production

c)

Wants

d)

Needs

10.

What are the 3 fundamental questions of economics?

a)

What to produce?

b)

Where to produce?

c)

How to produce?

d)

For whom to produce?

11.

Microeconomics focuses on -

a)

Income determination

b)

Employment determination

c)

Price determination

d)

all of these

12.

Positive statements in economics talk about

a)

opinions

b)

Facts

c)

both

d)

none

13.

which of the following is a normative statement?

a)

the number of corona cases in India has gone beyond 60000

b)

The number of corona virus deaths in India are above 2000

c)

There are over 40 crore migrant workers in India

d)

Indian government should provide free transport to all migrant workers to help them reach their hometown.

14.

What to produce is the central problem of choice of technique of production

a)

True

b)

False

15.

Central Problems are not faced by Developed economies.

a)

True

b)

False

16.

The shape of PPC is

a)

Downward sloping

b)

Concave to the origin

c)

both

d)

either of the two

17.

The Slope of PPC is known as _______

a)

Marginal Rate of Transformation

b)

Marginal Rate of Substitution

c)

opportunity cost

d)

both a and c

18.

Points on the PPC show

a)

Under utilization of resources

b)

Full and efficient utilization of resources

c)

Growth of Resources

d)

They show nothing

19.

A production combination that is achieved with under utilization of resources is shown

a)

on the PPC

b)

outside the PPC

c)

Inside the PPC

d)

it is not shown

20.

if in the production of two goods X and Y, we move from the point (30,40) to (40,0) then the MRT is

a)

0

b)

2:1

c)

3:1

d)

4:1

21.

which of the following is not an assumption of PPC

a)

Two goods

b)

fixed resources

c)

changing technology

d)

full and efficient utilization of resources

22.

Opportunity Cost is:

a)

The additional benefit of buying an additional unit of a product.

b)

That which we forgo, or give up, while making a choice or a decision.

c)

The cost incurred in the past before we make a decision about what to do in future

d)

A cost that is borne in terms of discomfort and pain while supplying factors of production.

23.

Economics is

a)

The study of stocks and bond market.

b)

The study of Management decisions.

c)

The problem of choice under scarcity.

d)

Mainly the study of business firms.

24.

Government-provided healthcare increases public expenditures.

a)

Normative Economic Statement

b)

Positive Economic Statement

25.

An outward shift in the curve shows what?

a)

Economic Growth

b)

Less Production

c)

Less employment

d)

Full Employment