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IGCSE Economics-Introduction to Business Terms Test

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

In a local market, Stephanie notices that the number of apples available for sale is equal to the number of apples that customers want to buy. What is the role of Equilibrium in this market?

a)

To maximize profits

b)

To balance supply and demand

c)

To increase production

d)

To reduce costs

2.

In a local market, April and Rain are selling fruits. When the number of fruits they have matches exactly with the number of customers wanting to buy them, what happens in the market?

a)

Prices fluctuate rapidly

b)

Supply exceeds demand

c)

Demand exceeds supply

d)

Supply equals demand

3.

In a small town, Ammar and Mason own competing coffee shops. What does their business competition refer to?

a)

Collaboration between companies

b)

Rivalry among companies to attract customers

c)

A monopoly in the market

d)

Government regulation of businesses

4.

Siwoo is starting a new manufacturing business. What does 'capital' include in the context of production for his business?

a)

Tools, machinery, and buildings

b)

Natural resources like water and minerals

c)

Human creativity and innovation

d)

Land and soil

5.

What is an example of 'capital' in a factory setting where Thomas works?

a)

The factory building

b)

The factory workers

c)

The raw materials

d)

The factory manager

6.

Mason and Stephanie are discussing the different sectors of the economy. Mason mentions that the secondary sector is responsible for manufacturing finished goods. What is an example of a finished good produced by the secondary sector?

a)

Raw materials

b)

Retail services

c)

Cars

d)

Healthcare

7.

During a school project, Thomas and Muizz decided to explore different sectors of the economy. They learned that one sector provides services rather than goods. Which sector were they studying?

a)

Primary

b)

Secondary

c)

Tertiary

d)

Quaternary

8.

As industrialization progresses, Muizz and Westy notice that the focus shifts towards what?

a)

Land and labor

b)

Capital

c)

Natural resources

d)

Manual workforce

9.

In a developed country, Thomas and WenChong are discussing the importance of a skilled labor force. What do they believe is the primary role of this skilled labor force?

a)

To increase manual labor

b)

To drive economic growth

c)

To reduce capital investment

d)

To focus on natural resources

10.

As Mehran studies the growth of his local economy, he notices that certain aspects evolve over time in economic development. What evolves over time in economic development?

a)

Natural resources

b)

Factors of production

c)

Population size

d)

Government policies