WorksheetsABBE1033 Lecture 1 Introduction
Total questions: 11
Worksheet time: 6mins
Name
Class
Date
1.
Which of the following is NOT considered a type of economic resource?
a)
Land
b)
Labor
c)
Capital
d)
Machinery
2.
How does positive economics differ from normative economics?
a)
Positive economics is subjective, while normative economics is objective
b)
Positive economics describes what is, while normative economics prescribes what ought to be
c)
Positive economics focuses on microeconomics, while normative economics focuses on macroeconomics
d)
Positive economics deals with theoretical models, while normative economics deals with real-world data
3.
Which of the following best describes microeconomics?
a)
The study of individual markets and consumer behavior
b)
The study of national economic trends
c)
The study of international trade
d)
The study of government fiscal policy
4.
What is the primary concern of macroeconomics?
a)
Individual consumer choices
b)
The behavior of firms
c)
Aggregate economic phenomena
d)
The pricing of goods and services
5.
Which concept explains the trade-offs between different goods that an economy can produce?
a)
Opportunity cost
b)
Comparative advantage
c)
Production Possibilities Frontier
d)
Supply and demand
6.
What does the Production Possibilities Frontier (PPF) illustrate?
a)
The maximum possible output combinations of two goods
b)
The minimum resources needed for production
c)
The equilibrium price in a market
d)
The relationship between supply and demand
7.
What does a point inside the Production Possibilities Frontier indicate?
a)
Efficient use of resources
b)
Underutilization of resources
c)
Overproduction of goods
d)
Optimal production
8.
What type of resource refers to human effort, skills and knowledge in production?
a)
Land resources
b)
Capital resources
c)
Labor resources
d)
Entrepreneurial resources
9.
What does the term 'ceteris paribus' mean in economic analysis?
a)
Everything changes
b)
Nothing matters
c)
All else being equal
d)
Cause and effect
10.
Which of the following is an example of a normative economic statement?
a)
The unemployment rate is 5%
b)
Inflation reduces purchasing power
c)
The government should provide free healthcare
d)
GDP grew by 2% last quarter
11.
What does the concept of opportunity cost represent?
a)
The monetary cost of a decision
b)
The benefit received from a choice
c)
The value of the next best alternative forgone
d)
The total cost of production
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