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Week 1 - Economic problem and PPF

Total questions: 10

Worksheet time: 11mins

Name
Class
Date
1.
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 
2.
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 
3.
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 
4.
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 
5.

What is opportunity cost?

a)

The opportunity to do something good

b)

All the costs of different alternatives

c)

The cost of everything when you make a decision

d)

The loss of other alternatives/benefits when you make a decision

6.

What are the 4 factors of production?

a)

Land, Labour, Capital, Enterprise

b)

Land, Labour, Capital, Commerce

c)

Land, Investment, Labour, Machinery

d)

Land, work, Capital, Entrepreneurship

7.

scarcity is the economic problem of having?

a)

Limited needs and wants

b)

Unlimited needs and wants

c)

Too many resources

d)

Limited wants

8.

Relative scarcity is when?

a)

Our wants are unlimited, but the resources to fulfill them are limited

b)

Our needs are unlimited, but our wants are limited

c)

We have too many resources and not enough wants

d)

The scarcity of one resource compared to another

9.
What is the production possibilities curve?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
10.
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