WorksheetsBasic Idea Economics Problem
Total questions: 20
Worksheet time: 10mins
Construction companies are building new houses on land previously used for farming.
What is the opportunity cost to society of this activity?
improved living conditions
less congestion in city centres
more homes for new homeowners
some farm output
What is regarded as factor of production?
capital
interest
profit
rent
Although people may satisfy their basic needs there is always something more they want. To what economic issue does this statement refer?
exchange
market forces
scarcity
income distribution
Which factor cause a shift in the supply curve for a good?
a fall in the price of the good
a fall in the price of its raw materials
an increase in the quantity consumed
an increase in consumers' incomes
What is not held constant in calculating a demand schedule?
the income of consumers
the prices of complementary goods
the price of the good itself
the tastes of consumers
What is not held constant in calculating a demand schedule?
the income of consumers
the prices of complementary goods
the price of the good itself
the tastes of consumers
What would be the excess supply at price T?
TV
VW
VZ
DY
The diagram shows the demand and supply curves for digital cameras. The original equilibrium point is X.
What will be the new equilibrium point if these cameras become more fashionable and the rate of sales tax rises?
A
B
C
D
In 2002 in Paris there was a decrease in demand for theatre tickets.
What might have caused this?
a decrease in fares on public transport in Paris
a decrease in the number of tourists in Paris
an increase in the number of jobs available in Paris
an increase in the subsidy given to theatres in Paris
Which factor is likely to cause an increase in people’s savings?
an increase in tax rates
an increase in the interest rate
a reduction in economic uncertainty
a reduction in real wages
An unemployed worker accepts a job
Which of the following is the opportunity cost of this decision?
the cost of travel to work
the income from the new job
the leisure time lost
the training in the new nob
A hospital cannot treat all the people that need treatment. this is an example of
excess supply
limited wants
scarcity
unlimited resources
The diagram shows the demand for chocolate.
What could cause the movement from point X to point Y?
a change in tastes
a fall in the price of chocolate
an increase in income
a successful advertising campaign for chocolate
The table shows the price of, demand for and supply of X per week.
What will be the effect if the government imposes a minimum price of $40 per tonnes?
a fall in the price of X
a shortage of X
a surplus of X
a waiting - list for X
The graph shows the market for rice. It was in equilibrium at X. Later, there is a very good harvest of rice.
What is the new equilibrium point?
A
B
C
D
Nolwazi lived in a rural area in Botswana and made baskets to sell to the tourists. The local government gave her a loan to buy a car to take the baskets to the city market.
Which factor of production increased?
capital
enterprise
labor
land
What, according to the definition of opportunity cost, is sacrificed when a decision is taken?
an identical alternative
any possible alternative
the least valuable alternative
the next best alternative
What is not a factor of production?
company shares
machinery
raw materials
unskilled workers
A charity sold tickets at $5 each. A prize of $100 was given to the owner of the winning ticket. A student bought a ticket, but did not win.
What is the opportunity cost to the student?
$5
$100
what could have been bought with $5
what could have been bought with $100
What is a feature of a mixed economic system but not a planned economy system?
It has both industrial and service sectors
It has both large and small firms
It has both public and private sectors
It has both rural and urban areas
