WorksheetsEconomics AS Level Ch 1 Basic Economic Ideas pt. 1
Total questions: 20
Worksheet time: 1hrs 16mins
What is the fundamental economic problem?
Limited wants vs Limited resources
Unlimited wants vs limited resources
Unlimited needs vs Limited resources
Unlimited wants vs unlimited resources
What is the meaning of scarcity?
When our wants and needs exceed the available resources
When the resources are poorly managed
When our wants and needs are fulfilled with the current resources
When our wants and needs need to be aligned with the resources
Name 4 types of resources that are affecting the production process?
Nature, People, Capital, Enterprise
Land, Labour, Cash, Enterprise
Land, Workers, Industry, Firms
Land, Labour, Capital, Enterprise
Give an example of a business that includes the 4 factors of production
Land refers only to the field where a business takes place
True
False
Capital refers man-made resources such as, machinery
True
False
Enterprise role is responsible to ______ the 3 other resources and to take _____
(a)
What are the risk that an entrepreneur takes?
A country has a budget of $1,000,000 to be given to the education sector or to build infrastructure. The government decided to allocate the money for building more schools.
Which one is the opportunity cost taken by the government?
Building more infrastructure
Establishing more schools
In the production process, producers need to ask these things to consider the choices and make decision.
____ to produce?
____ to produce?
____ to produce?
(a)
"We should cut taxes in half to increase disposable income levels"
Positive statement
Normative statement
"Based on past data, big tax cuts would help many people, but government budget constraints make that option unfeasible."
Positive statement
Normative statement
"Women should be provided higher school loans than men"
Positive statament
Normative statement
"If the people know the negative impact of smoking tabacco they would have stop doing it"
Positive statement
Normative statement
"In relation to scarcity problem, we should be focusing on producing goods and services where they have an advanatage over others" is the definition for?
Specialisation
Exchange
Scarcity
Ceteris paribus
Characteristics of the division of labour
Splitting tasks into sequence of individual tasks
Will likely make workers bored and unmotivated
Make sure everyone does everthing at once
Will reduce output and inefficient
The resource allocation in this country is determined by the producers and consumers in the economy
Planned economy
Market economy
Mixed economy
Monopoly economy
In command economy, the consumers command what need to be produce and how much
True
False
What are the benefits of planned economy?
Producers and consumers have the power
Everyone would be employed
Government aims for social welfare
Subsidy available for underproduced goods and services
Income should be well distributed
What would likely to happened in the process of privatisation?
1. Unemployment decreases
2. Improve efficiency
3. Better quality
4. GDP would decrease with high inflation
5. People would choose consuming merit goods
6. Government earns money from tax
1, 2, 3
2, 4, 6
3, 5,6
1, 3, 5
