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WorksheetsWHSS Test O 1 C
Total questions: 10
Worksheet time: 10mins
1. What is part of the economic definition of scarcity?
A high levels of taxation
B low levels of investment
C unequal distribution of income
D unlimited consumer wants
A
B
C
D
A government spends $100m on subsidising wind farm construction instead of spending it on an increase in healthcare. Which economic concept does this spending decision illustrate?
A external cost
B free goods
C market disequilibrium
D opportunity cost
A
B
C
D
What is a definition of a firm’s revenue?
A money received from sales
B sales volume
C surplus over costs
D tax payments
A
B
C
D
The Chinese government is concerned about the level of poverty and the need for more resources in low-income regions of the country. As a result, it is increasing its expenditure in those regions and reducing it in high-income regions. Which economic concept does this government policy illustrate?
A diseconomies of scale
B market forces
C opportunity cost
D specialization
A
B
C
D
An airline needs people and equipment. These can be divided into factors of production. What is allocated to its correct factor of production?
A
B
C
D
A government decides to move towards a market economy by selling state-owned enterprises. What is a possible motive for this?
A to create greater income equality
B to extend government control of the economy
C to increase efficiency of production
D to take account of external costs
A
B
C
D
Which government policy will increase productivity?
A decreasing the number of training programmes
B encouraging labour-intensive production
C promoting good industrial relations
D reducing private sector investment
A
B
C
D
What is the effect on an economy of net emigration of people aged 20–40?
A a more mobile labour force
B an ageing population
C higher government tax revenue
D rising house prices
A
B
C
D
What does an economist mean by capital?
A man-made goods that do not directly satisfy human wants
B money used to set up new businesses and expand existing businesses
C natural resources that will not be replaced
D the ability to earn profits by combining resources to produce goods
A
B
C
D
What is found in a mixed economy but not a free market economy?
A banks
B division of labour
C price controls
D profit motive
A
B
C
D
