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ECON CSEC May-June 2021 1-10

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

In economics, the excess of human wants over existing resources is known as

a)

Greed

b)

Scarcity

c)

Opportunity cost

d)

Economic decline

2.

An ‘economy’ is BEST described as

a)

A system of production, distribution and consumption

b)

A system where suppliers produce all the goods and services needed by consumers

c)

The utilization of resources by manufacturers to produce goods and maximize profits

d)

A system whereby all the goods and services used by citizens of a country are provided by the government

3.

Item 3 refers to the following diagram which illustrates the production possibility frontier for an economy that is capable of producing bauxite and sugar in different combinations.

Point X on the diagram above represents

a)

Economic growth

b)

Unemployed resources

c)

An efficient combination

d)

An unattainable combination

4.

An outward shift in the production possibility curve can be caused by an

a)

Increase in wages

b)

Increase in imports

c)

Improvement in technology

d)

Improvement in the standard of living

5.

Economics is classified as a

a)

Social science

b)

Natural science

c)

Physical science

d)

Business science

6.

Which of the following actions is LEAST likely to be among a government’s potential economic decisions regarding businesses?

a)

Increasing retirement benefits

b)

Passing minimum wage legislation

c)

Regulating the emission of toxic waste

d)

Identifying areas where businesses should be located

7.

The average variable cost is

a)

$100

b)

$400

c)

$1,000

d)

$4,000

8.

Large firms can achieve savings in unit costs as a result of advertising and packaging. These kinds of economies of scale can be classified as

a)

Financial

b)

Technical

c)

Marketing

d)

Managerial

9.

How many units of labour produce the HIGHEST average product of labour?

a)

6

b)

7

c)

8

d)

9

10.

Which of the following pairs of activities in a country falls under the tertiary sector?

a)

Banking and tourism

b)

Tourism and agriculture

c)

Banking and construction

d)

Manufacturing and fishing