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WorksheetsBasic Economics
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
What factor of production's function is to make decisions and take risks?
a)
Capital
b)
Enterprise
c)
Land
d)
Labour
2.
What type of factor of production is a road?
a)
Capital
b)
Enterprise
c)
Labour
d)
Land
3.
What is meant by 'labour' in economics?
a)
Hard physical work used to produce manufactured goods
b)
Human mental and physical effort used for producing goods and services
c)
Natural resources used in the productive process
d)
Risk taking and organising the factors of production
4.
Which factor of production is the least mobile?
a)
Capital
b)
Enterprise
c)
Labour
d)
Land
5.
What is meant by opportunity cost?
a)
The next best alternative foregone
b)
The cost of the item selected
c)
The cost of exploring business opportunities
d)
The labour used in producing the product
6.
Which is the following is a free good?
a)
A vaccination provided by the state without charge
b)
Prizes of food items given away by a supermarket
c)
Recycled paper
d)
Wind coming from the sea
7.
What does a production possibility curve show?
a)
The prices of two types of products being produced
b)
The quantity of capital and consumer goods that people would like to be produced
c)
The maximum combination of two types of goods that can be produced with given resources.
d)
The relative profitability of capital and consumer goods
8.
What does a point outside the PPC represent?
a)
A currently unattainable position
b)
An inefficient position
c)
The maximum use of resources
d)
Unused resources
9.
Why does scarcity exist?
a)
Each year workers tend to produce less than previously
b)
Machines wear out in time
c)
There are not sufficient resources to meet everyone's wants
d)
There is a limit to people's wants
10.
Why will scarcity continue to be a problem in the future?
a)
Prices will rise
b)
Resources will always be finite
c)
Needs will decrease in the future
d)
World population will fall
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