WorksheetsEconomics AS Level Ch 1 Basic Economic Ideas pt. 2
Total questions: 21
Worksheet time: 33mins
Production Possibility Curve (PPC) is a diagram to show?
The trade-off of resources in producing two different goods
The negative relationship between output and price
The opportunity cost between one resource
A concave PPC shows a/an ___________ opportunity costs
Increasing
Decreasing
The PPC concave-shaped shows that available resources may not be transferrable to produce the other goods/services (immobile)
True
False
The dilemma faced by developing countries is to choose between _______ and ______ goods
(a)
What would happen if the economy focuses on producing consumer goods now than capital goods? Explain the short-term and long-term effect(s)!
What are the functions of money?
Medium of exchange
A standard for deferred payment
Unit of account
Store of wealth
Power in economy
Private goods are
Goods that can be used privately
Goods that can set people apart from the benefit
Goods that can have its benefit reduced when more people consume it
Goods that make someone superior
Which of these scenarios causes the PPC to shift outwards?
Training for the employees
An invention to improve machinary output
A natural disaster
Re-arranging factury layout
What could be the possible reason when PPC move from PPC3 to PPC4?
If this is the production of peanut and potato in Indonesia. What would be the shape of its PPC? And explain the possibility of this movement. Please draw the diagram and send it through WA chat.
If the economy chooses to produce more of the consumer goods these things might happen except?
Higher living standard
A wider range of product
Able to satisfy future wants and needs
Sacrifice resources for capital goods
Is land considered liquid asset?
Yes
No
How liquid are your shares in the stock market?
Liquid
Somewhat liquid
Not liquid
No idea
Tara tried to sell her TV for $500. Which of functions of money that you can see here?
Medium of exchange
Unit of account
Standard for deferred payment
Store of wealth
What are the characteristic of private goods?
Excludability, non-rivalry
Non-exclidable, rivalry
Excludability, rivalry
Non-excludable, non-rival
A COVID-19 healthcare subsidy, does it considered as public good?
Yes, because it cannot exclude people from getting the benefit from the service
No, because rivalry still exists when trying to book for doctors
No, because it can exclude someone when the hospital is full
Yes, everyone can get the same benefit
Merit goods are goods/services that has external benefit > private benefit
True
False
Street light is an example of private goods and merit goods
True
False
Merit good is a good that is better for a person than that person realises. What is the example of this?
Getting tertiary education can help a person to get better jobs
Going to a dentist can help their oral health to prevent any diseases
Using public transportation can reduce pollution and traffic
Consummerism helps the economy to grow
Value judgement is the condition where the society knows what's good and bad for them so they can make an informed decision. Is this realistic?
Yes
No
When civil servant has a guaranteed job for life, the quality of their work may deteriorate because they are protected from making bad decision. Is this an example of?
Adverse selection
Paternalism
Consumer irrationality
Moral hazard
