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WorksheetsMicroeconomics Quiz
Total questions: 10
Worksheet time: 5mins
What is the fundamental problem in economics?
Unlimited wants and unlimited resources
Limited wants and limited resources
Unlimited wants and limited resources
Unlimited resources and limited wants
What does scarcity refer to in economics?
The abundance of resources
The efficient allocation of resources
The limited supply of resources
The infinite wants of society
What does the Production Possibilities Curve (PPC) represent?
The maximum combinations of two goods that can be produced
The minimum combinations of two goods that can be produced
The average combinations of two goods that can be produced
The total resources available in an economy
What does a point inside the PPC indicate?
Maximum production capacity
Unattainable production levels
Underemployment or unemployment of resources
Full employment of resources
What causes the PPC to shift outward?
Increase in unemployment
Reduction in production capacity
Technological advancements
Decrease in resource quality
What is opportunity cost?
The cost of producing goods
The value of the best alternative forgone
The total cost of resources used
The price of goods in the market
Which of the following is an example of opportunity cost?
Saving money in a bank
Buying a new car
Choosing to study instead of working
Investing in stocks
What does a point outside the PPC represent?
Underutilization of resources
Efficient production levels
Unattainable production combinations
Optimal resource allocation
What is the shape of the Production Possibilities Curve?
Concave
Circular
Straight line
Convex
What does the downward slope of the PPC indicate?
No trade-offs are necessary
Resources are unlimited
More of good X can be produced by sacrificing good Y
More of good Y can be produced by sacrificing good X
