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IGCSE Economics Chapter 2

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

An economy is

a)

an area where people and firms produce, trade and consume goods and services

b)

a city where people and firms produce, trade and consume goods and services

c)

a country where people and firms produce, trade and consume goods and services

d)

a town where people and firms produce, trade and consume goods and services

2.

Which of the following is true?

a)

Microeconomics is the study of the entire economy

b)

Macroeconomics is the study of individual markets

c)

Macoeconomics is the study of the entire economy

d)

Microeconomics is the study of individual markets

3.

What are the three questions to ask in allocating resources?

a)

To decide what goods and services to produce

b)

To decide for who to produce for

c)

To decide how to produce them

d)

To decide where to produce them

4.

What is demand and supply?

a)

Demand is the want and willingness of consumers to buy a good or services at a given price.

b)

Demand is the want and willingness of producers to supply a good or services at a given price

c)

Supply is the want and willingness of producers to supply a good or services at a given price

d)

Supply is the want and willingness of producer to buy a good or services at a given price.

5.

What is this represented?

a)

Extension of Supply

b)

Contraction of Demand

c)

Extension of Demand

d)

Contraction of Supply

6.

What is represented by this?

a)

Contraction of Demand

b)

Contraction of Supply

c)

Extension of Supply

d)

Extension of Demand

7.

What is represented by this?

a)

Extension of Supply

b)

Contraction of Supply

c)

Extension of Demand

d)

Contraction of Demand

8.

What is represented by this?

a)

Extension of Supply

b)

Extension of Demand

c)

Contraction of Demand

d)

Contraction of Supply

9.

What is Price Elasticity of Demand (PED)

a)

the responsiveness of the quantity demanded for it to changes in its price.

b)

the responsiveness of its quantity supplied it to changes in its price.

10.

What affect PED?

a)

Time Period

b)

No. of Subsitutes

c)

Degree of Advertising

d)

Proportion of Income on Commodity