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ECON EASE 2 POINTERS

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

which combination of characteristics describes a public good?

a)

excludable and non rival in cuonsumption

b)

excludable and rival in consumption

c)

non excludable and non rival in consumption

d)

non excludable and rival in consumption

2.

What is the role of the price mechanism in a market economy?

a)

To increase the provision of merit goods

b)

To allocate scarce resources

c)

To make the distribution of goods and services more equal

d)

To reduce the negative externalities of production and consumption

3.

What is a macroeconomic aim of a government?

a)

Balance of payments stability

b)

Deflation

c)

Income inequality

d)

Unemployment

4.

What will increase the demand for labor in an industry?

a)

A decrease in labor productivity in that industry

b)

A decrease in the demand for the good made in that industry

c)

An increase in labor productivity in that industry

d)

An increase in wages in that industry

5.

Which result of increased specialization in a firm is an advantage for the firm, but a disadvantage for some of the workers in the firm?

a)

Greater mechanization

b)

Higher labor productivity

c)

Higher skill levels

d)

Longer training times

6.

What is a disadvantage of a market economy?

a)

Not enough competition

b)

Not enough merit goods

c)

No consumer choice

d)

State intervention

7.

The owner of a hotel in Malaysia finds that the price elasticity of demand (PED) for accommodation in the area is -1.7.

If the hotel owner decreases the price of a room by 5%, how would the demand for a room change?

a)

It would decrease by 2.9%.

b)

It would decrease by 8.5%.

c)

It would increase by 2.9%.

d)

It would increase by 8.5%.

8.

Newly built houses tend to be inelastic in supply. A government aim is to make the supply more elastic by relaxing building regulations.

Why is the government not likely to achieve this aim immediately?

a)

Costs of building materials fluctuate according to season.

b)

Houses take a long period of time to be built.

c)

Banks will only lend to high-income earners.

d)

Population increases lead to greater housing demand.

9.

What causes a change in the price of a product in a free market economy?

a)

Changes in demand and supply conditions

b)

Changes in external costs and external benefits

c)

Changes in government decisions

d)

Changes in the quantity of public goods

10.

What is the result if a national minimum wage of OM is introduced?

a)

A. fall - rise

b)

B. no change - fall

c)

C. rise - fall

d)

D. rise - no change

11.

The student revises for 3 hours a day. As exams approach, the student decides to revise for 9 hours a day.

What is the opportunity cost of this decision?

a)

3 hours of revision

b)

6 hours of entertainment

c)

6 hours of revision

d)

9 hours of entertainment

12.

To help reduce the price of oil, new supplies are needed. However, objectors oppose exploration of the new sites because the enviromental damage it may cause. Why is this statement an example of the basic economic problem?

a)

Oil is a limited resource

b)

Oil is expensive

c)

The exploration involves

d)

There are external costs involved in production