WorksheetsIGCSE Economics: The Basic Economics Problems
Total questions: 10
Worksheet time: 8mins
Opportunity cost is the scarifies of
the lowest cost alternative
the next alternative
the best alternative
the next best alternative
The following are four ways factors of production are used.
What is likely to require the greatest use of the factor enterprise?
a carpenter making wooden articles in his leisure time for sale at a monthly market
a food shop owner sometimes selling flowers in the shop
a householder harvesting vegetables grown at home
a corn farmer negotiating with other farmers to hire expensive machinery
A person makes sandwiches at home for five hours each day. She makes 20 sandwiches per
hour, and she sells each sandwich for $2 each.
What is the opportunity cost if she takes a holiday on a working day?
$40
20 sandwiches
$2
100 sandwiches
To help reduce the price of oil, new supplies are needed. However, in 2013, objectors opposed
attempts to explore new sites because of the environmental damage the exploration might cause.
How does this illustrate the basic economic problem?
There are external costs involved in production.
The exploration involves demand and supply.
Oil is a limited resource.
Oil is expensive.
The diagram shows production possibility curves (PPC) for a country that can produce
agricultural products or manufactured products. Its current PPC passes through points Q and S but the country is currently experiencing
unemployment. If there is now full employment at the same time as new agricultural techniques enable an
increase in productivity, what would be the movement on the PPC diagram?
Q to R
P to R
P to S
S to R
New oil reserves are discovered.
What has increased in supply?
(a)
What is the basic economic problem?
Provide the keywords.
(a)
Why are wants not fully satisfied in an economy?
Governments cannot print enough money to pay for goods and services.
An economy can only produce a limited amount of goods and services.
Workers are too skilled for the requirements of the jobs available.
There is an over-production of goods and services by business organisations.
Which statement(s) is/are correct to described as public goods?
It is free and abundant
It is limited
Zero opportunity cost
It is essential for living things
What are the factors of productions?
(a)
