WorksheetsTerm 3 Revision Quiz - IGCSE Economics
Total questions: 22
Worksheet time: 11mins
What would an economist regard as an example of the factor of production capital?
an individual’s purchase of stocks and shares
borrowing by a firm to pay for electricity
the building by a firm of a new factory
total savings by individuals in a country
The diagram shows a production possibility curve (PPC).
Why is the curve usually drawn like this?
International free trade exists.
Opportunity cost changes.
Resources are unlimited in supply.
Some resources will be unemployed.
Which situation indicates a mixed economy?
Economic activity is controlled entirely by the private sector.
Individual choices are unaffected by government actions.
Services are provided by both private and public sectors.
The government carries out all planning and decision making.
What causes market failure?
government provision of services
social costs equal private costs
the existence of external benefits
the existence of perfect competition
A,B,C,D?
A
B
C
D
A,B,C,D?
A
B
C
D
A,B,C,D?
A
B
C
D
A,B,C,D?
A
B
C
D
1 What is the basic economic problem faced by all societies?
Achieving happiness
An inefficient economic system
Rewarding factors of production
Scarcity of Resources
Which product is most likely to be classified as a free good?
Birthday presents
Public transportation
Seawater
State (government-funded) education
Which option is not an example of capital as a resource?
Computers
Factory
Machinery
Natural resources
Which event is most likely to cause an increase in the average wage of labour?
A decrease in the national minimum wage
An increase in the national minimum wage
Government tax policies
Net migration of labour into the country
Juke bought a new Xbox One games console for $295 but has never used it.The second-hand value of his Xbox One is $195. What is the opportunity
cost of Juke owning the games console?
0$
100$
195$
295$
What is the opportunity cost to the economy if the government decidesto build a new motorway (highway)?
The cost of relocating and compensating residents in order to build the motorway
The money spent on building the motorway
The other projects that could have been undertaken had the motorway not been built
The overall cost to taxpayers of financing the motorway project
What are the characteristics of a free good?
Has an opportunity cost. Takes resources to produce it
Has an opportunity cost. Takes no resources to produce it
Has no opportunity cost. Takes no resources to produce it
Has no opportunity cost. Takes resources to produce it
The term "derived demand" means...
demand for secondary products only
demand that is dependent on government supplying the product
demand that arises because the supply of the good is reduced
demand that arises because there is demand for another good.
The term "economies of scale" refers to ...
the average costs of production decreasing as a firm expands
the average costs of production rising as a firm expands
the average costs of production remaining the same as a firm expands
the average costs of production at first decreasing, then increasing, as a firm expands
What are capital goods?
goods that are produced in the capital
the factories, machinery, and technology used to produce goods and services
goods that are produced without natural resources
goods that are produced by the government
What does human capital mean?
the place where the most people live within a country
the place where the most work is performed within a country
the people who perform labor (work)
the building where most people work in a country or state
What type of product is education?
An inessential good
An inferior good
A merit good
A public good
In what type of economy, are most workers employed by the government?
Free enterprise
Market
Mixed
Planned
Which of the following could increase a country’s productive potential?
An improvement in education
A reduction in the retirement age
Retention of worn out machinery by firms
Migration of workers to other countries
