WorksheetsCh 2 Economics Practice Test1
Total questions: 43
Worksheet time: 40mins
Which of the following are factors of production?
economics & business decisions
technology & productivity
scarcity & shortage
capital & land
An economy that is producing the maximum amounts of goods & services is called
underutilized
efficient
growing
trading off
A factory is an example of which factor of production?
Land
Labor
Physical Capital
Human Capital
Entrepreneurs
take risks
create ideas
start businesses
all of the above
The use of fewer resources than an economy is capable of using
efficiency
underutilization
law of increasing costs
trade-off
GDP stands for
Grand Deposit Pricing
Grand Decision Practicing
Gross Domestic Pricing
Gross Domestic Product
Land includes...
The "gifts of nature" or natural resources not created by human effort.
the tools, equipment, and factories used in production of goods and services
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
Capital refers to...
The "gifts of nature" or natural resources not created by human effort.
people with all their efforts and abilities
the tools, equipment, and factories used in production of goods and services
individuals who start a new business or bring a product to market.
Labor refers to...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
the tools, equipment, and factories used in production of goods and services.
The "gifts of nature" or natural resources not created by human effort.
Entrepreneurs are...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
The "gifts of nature" or natural resources not created by human effort.
the tools, equipment, and factories used in production of goods and services
Durable Goods
Non-durable goods
Bill Gates is an example of...
Land
Labor
An Entrepreneurs
Capital
Why is point D inefficient in this scenario?
Point D is on the Production Possibilities Curve
Point D is not illustrated on the graph
Resources at Point D are not being fully used in the goods and services production
Point D is beyond the ability to produce goods and services at the time
Would meeting point E be possible in this scenario?
Yes, the resources can grow over time
No, because the point lies outside what the resources can produce at the time.
Yes, point E represents an optimal state for the producer
Maybe, the possibilities are infinite in this scenario
What does a bowed out production possibilities curve indicate?
No opportunity cost
Constant opportunity cost
Increasing opportunity cost
Decreasing opportunity cost
What does a point inside the production possibilities curve indicate?
Unattainable combination
Economic growth
Underutilization of resources
Efficiency
What does a straight line production possibilities curve indicate?
Constant opportunity cost
Increasing opportunity cost
Decreasing opportunity cost
No opportunity cost
What causes the production possibilities curve to shift?
No change in resources
Decrease in resources
Increase in resources
Decrease in technology
What is the significance of a point on the PPC curve?
It shows maximum efficiency
It shows minimum efficiency
It shows no efficiency
It shows random efficiency
Deficit budget refers to that situation in which governments budget expenditure is -
less than its budget receipts
more than its budget receipts
equal its budget receipts
none of these
