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WorksheetsCENTRAL PROBLEM OF ECONOMICS
Total questions: 20
Worksheet time: 20mins
________ is the root of all economic problems.
Alternatives
Planning
Wants
Scarcity
The fundamental economic problem being faced is
Unlimited human wants
Limited want and unlimited resources
Unlimited want and scarcity of resources
Limited want and limited resources
_________ is a system which provides people, the means to work and earn a living.
Economics
Economy
Demand
Scarcity
Which of the following is a free good?
A vaccination provided by the state without charge
Prizes of food items given away by a supermarket
Recycled paper
Wind coming from the sea
What do you mean by Opportunity cost?
Is the value of a factor in its next best alternative use.
Is the value of factor in its previous alternative use
Both A and B
Which of the following is NOT considered a main agent in an economy?
Households
Firms
Government
Weather
What role do households play in an economy?
They produce goods and services
They consume goods and services
They regulate the economy
They provide financial aid
Which agent is primarily responsible for the allocation of resources in an economy?
Households
Firms
Government
Financial institutions
What is the primary function of firms in an economy?
To consume goods and services
To produce goods and services
To regulate the economy
To provide employment
How does the government influence economic activity?
By setting prices for goods
By providing public goods and services
By controlling the weather
By limiting the number of firms
Which of the following is an example of an economic good?
Public parks
Water from a river
Luxury cars
Sunlight
What distinguishes free goods from economic goods?
Free goods are limited in supply
Economic goods require resources to produce
Free goods have a price
Economic goods are available to everyone
Which of the following statements is true regarding free goods?
They are always available in unlimited quantities
They can be sold in the market
They require payment to access
They are produced using scarce resources
What is the main focus of microeconomics?
National economic growth
Individual consumer behavior
Global trade relations
Government fiscal policies
Which branch of economics studies the overall functioning of an economy?
Microeconomics
Macroeconomics
Behavioral economics
Development economics
Which of the following best describes a 'need'?
A luxury item that enhances comfort
A basic requirement for survival
A desire for a specific brand
An optional purchase for enjoyment
How do wants differ from needs in economic terms?
Wants are essential for survival, while needs are not
Wants are unlimited, while needs are limited
Wants are influenced by culture, while needs are universal
Wants can be satisfied without resources, while needs cannot
What is an example of a want that can become a need?
A smartphone
A basic meal
A luxury car
A vacation
