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Basic Problems of an Economy

Total questions: 21

Worksheet time: 14mins

Name
Class
Date
1.

Which of the following are NOT examples of "basic economic problems"?

a)

Where to produce

b)

How to produce

c)

Why to produce

d)

What to produce

2.

The operator of a canteen in the government headquarters decides to sell fish balls and not siu mai anymore because the former can earn a higher profit. This is an example of using ____ to solve the problem of ____

a)

government command ,

‘what to produce’

b)

B. government command,

‘for whom to produce’

c)

market mechanism,

‘what to produce’

d)

market mechanism,

‘for whom to produce’

3.

What is the basic economic problem?

a)

the value forgone from the next best alternative

b)

the fact that the world has finite resources but humans have infinite wants

c)

too many resources

d)

the fact that the world has infinite resources but humans have finite wants

4.

Which of these is not a decision which is made to solve the basic economic problem?

a)

What to produce

b)

How to produce

c)

Why to produce

d)

For whom to produce

5.

Which of the below is not scarce resource?

a)

Oil

b)

Sea water

c)

Natural gas

d)

Gold

6.

Define scarcity

a)

The infinite availability of resources

b)

The cost of making a decision

c)

Oil

d)

The limited availability of resources

7.
Why does scarcity exist?
a)
Each year workers tend to produce less than previously 
b)
Machines wear out in time
c)
There are not sufficient resources to meet everyone's wants
d)
There is a limit to people's wants 
8.

Goods with limited supply is known as

a)

General goods

b)

Free goods

c)

Specific goods

d)

economics goods

9.
Which is the following is a free good?
a)
A vaccination provided by the state without charge 
b)
Prizes of food items given away by a supermarket 
c)
Recycled paper
d)
Wind coming from the sea
10.

Economics problems are mainly a result of ________

a)

Inaccurate statistical data in India

b)

Excessive wastage of availability of resources

c)

Lack of vision the part of the resource users

d)

Limitation in availability of resources

11.

Which of the following is not a basic economic problem of society?

a)

What to produce

b)

Efficient use of resources

c)

Factor of production

d)

How to produce

12.

    The fundamental problem of economics is _____

a)

Money

b)

Poverty

c)

Unemployment

d)

The scarcity of resources relative to wants

13.

   In any economic system, which of the following is not an economic problem?

a)

What goods and services to produce

b)

For whom to produce goods or services

c)

What techniques of production to be adopted

d)

Equal distribution of the goods and services

14.

Most of the problems in economics arise as a result of _______

a)

Competing demands for the scarce resource

b)

Increase in the demand for more goods and services

c)

The desire of producers to supply more goods and services

d)

The need to reduce the level of poverty

15.

   A basic economic problem of any society is ______

a)

Resource allocation

b)

Population growth

c)

Irregular power supply

d)

High level of illiteracy

16.

The basic problem that economics attempts to solve is the __________

a)

Ranking of goods and services

b)

Pricing of goods and services

c)

Scarcity of resources

d)

Satisfaction of producers needs

17.

Economic agents have to make choices due to ..........

a)

Unlimited resources

b)

The existence of free goods

c)

Finite resources

d)

Limited alternatives

18.

Which is NOT a major economic problem?

a)

When to produce?

b)

What to produce?

c)

How to produce?

d)

For whom to produce?

19.

Economics is said to deal mostly with the ____________ of resources.

a)

Deprivation

b)

Allocation

c)

Usage

d)

Consumption

20.

Allocation and scarcity is a problem because people have unlimited ____________.

a)

problems

b)

wants and needs

c)

resources

d)

desires

21.

How many central/ basic Problems are there :

a)

2

b)

3

c)

4

d)

2