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Economics Quiz: Scarcity and Choice

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the definition of economics?

a)

A science that studies the Earth's physical structure

b)

A social science that studies how people with limited resources make choices

c)

A branch of mathematics dealing with numbers and calculations

d)

A study of ancient civilizations and their cultures

2.

Which of the following is NOT a factor of production?

a)

Capital

b)

Land

c)

Labour

d)

Technology

3.

What is the reward for the use of land in production?

a)

Rent

b)

Interest

c)

Wages

d)

Profit

4.

What is the opportunity cost?

a)

The financial cost of a decision

b)

The price of the item we choose to buy

c)

All the other things we could have done with our resources

d)

The total cost of production

5.

Which factor of production is associated with wages?

a)

Land

b)

Labour

c)

Capital

d)

Enterprise

6.

What is a need?

a)

An item that is scarce and expensive

b)

A luxury item that improves quality of life

c)

Something essential for survival or important in daily life

d)

Something we would like to have but is not essential

7.

What is the reward for enterprise?

a)

Interest

b)

Wages

c)

Profit

d)

Rent

8.

What does scarcity imply in economics?

a)

Resources are abundant and unlimited

b)

Resources are only available to the wealthy

c)

Resources are evenly distributed among all people

d)

Resources are limited and have alternative uses

9.

What is the economic term for the greatest benefit or satisfaction from limited resources?

a)

Utility

b)

Scarcity

c)

Opportunity cost

d)

Financial cost

10.

Which of the following is an example of a want?

a)

Shelter

b)

A new mobile phone

c)

Clothing

d)

Food

11.

What is the reward for the use of capital?

a)

Rent

b)

Wages

c)

Interest

d)

Profit

12.

What must be done due to the scarcity of resources?

a)

Increase the supply of all resources

b)

Ignore the needs and wants of people

c)

Make choices about resource allocation

d)

Produce unlimited goods and services

13.

What is a rational choice?

a)

A choice where expected losses outweigh expected gains

b)

A choice made without considering the consequences

c)

A choice that offers the greatest benefit to the greatest number of people

d)

A choice based on emotions rather than logic

14.

Which of the following is NOT a characteristic of economic resources?

a)

They have alternative uses

b)

They have value

c)

They are scarce

d)

They are unlimited in supply

15.

What is the financial cost?

a)

The price of the item we choose to buy

b)

The cost of producing goods and services

c)

The total cost of all possible choices

d)

The cost of resources not used