WorksheetsEconomics Quiz
Total questions: 20
Worksheet time: 13mins
Which one of the following will cause a movement along the demand curve in the market for rice?
An increase in the global population
An increase in real incomes
A decrease in the price of noodles
A decrease in the price of rice
Which one of the following is a central purpose of economic activity? The production of goods to:
Advance technology in a country
Satisfy the needs of consumers.
Ensure equitable access to utility.
Provide tax revenue for the government
Which one of the following is a positive economic statement?
A cut in social security benefits will increase incentives to work.
There needs to be an increase in defence spending.
The government should reduce the standard rate of income tax.
The government ought to cut social security benefits.
Economic decision-makers are primarily concerned with:
Increasing international trade.
Reducing prices.
Maximising their welfare.
Increasing output.
The basic economic problem is that:
Resources have to be allocated between competing uses.
Consumers have infinite wants.
Every economic decision generates externalities.
Governments cannot always deal effectively with market failure.
Which one of the following statements is false? At all points on the production possibility curve:
Resources are fully employed.
The economy is working at its full potential.
There is productive efficiency.
Resources are allocated efficiently.
An economist puts forward a hypothesis which is assessed against evidence. As a result of this, the hypothesis is accepted, rejected or modified. This is an example of:
How normative but not positive economic statements are tested.
How value judgements influence economic decision making.
The methodology used to test economic theories.
Why economics is a social not a natural science.
The diagram below shows the demand curve (D) and the supply curve (S) in the market for tomatoes. Which one of the following would result in a higher quantity consumed and a lower price charged for tomatoes?
A fall in the price of the fertiliser used to grow tomatoes
A hot summer causes consumers to eat more tomato salad
The minimum wage for farm workers is increased
The price of cucumbers falls
Which of the following is not a form of capital?
Computers
Bank loans
Tools and equipment
Buildings
The following diagram shows demand and supply in the market for roses. The demand for roses shifts from D1 to D2. Other things remaining the same, it can be concluded that:
Suppliers have pushed up the price of roses.
The higher price of roses will cause demand to fall back to D1.
The cost of fertiliser has fallen for the flower industry
There has been a shift in consumer preferences for roses
The demand for cocoa is derived from the demand for chocolate. When the demand for chocolate falls, the most likely result is a:
Movement along the demand curve for cocoa.
Movement along the supply curve for cocoa.
Shift right of the supply curve for cocoa.
Shift right of the demand curve for cocoa.
The following figure shows supply and demand in the market for beef. D1 shows the initial demand and S1 the initial supply curve. Which one of the following combinations of events would be most likely to cause demand to shift leftwards from D1 to D2 and supply to shift rightwards from S1 to S2?
A fall in the price of chicken and an increase in the price of animal feed
A fall in workers’ wages and a shift in preferences towards vegetarian food
Higher disposable incomes and a fall in farm productivity
Higher rents for farmland and health warnings about eating red meat
A resource must be scarce if:
It has an opportunity cost.
It is non-renewable.
There is a high demand for it.
There is a small quantity supplied.
The secondary sector includes activities such as:
Education and healthcare
Information technology and research
Transportation and logistics
Construction and manufacturing
The tertiary sector includes activities such as:
Farming and fishing
Utilities and telecommunications
Extraction of minerals and oil
Publishing and media
The division of labor refers to:
The separation of tasks in an economy.
The allocation of resources in an economy.
The exchange of goods and services in a market.
The role of government in regulating economic activities.
The division of labor can lead to increased productivity because:
It reduces the need for specialized skills.
It allows for economies of scale.
It eliminates the need for trade.
It promotes competition among workers.
One of the disadvantages of the division of labor is:
Increased efficiency in production.
Higher levels of job satisfaction.
Monotony and boredom for workers.
Increased opportunities for skill development.
Specialization, which is closely related to the division of labor, refers to:
The geographical distribution of economic activities.
The concentration of resources in specific industries.
The focus on producing a narrow range of goods or services.
The cooperation between firms in a market.
The government's intervention in a mixed economy is primarily aimed at:
Achieving income equality among the population.
Promoting economic growth and development.
Eliminating private ownership of resources.
Maximizing consumer satisfaction and utility.
