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WorksheetsUnit 1 FY Economics Study Area 1
Total questions: 36
Worksheet time: 18mins
What is the fundamental economic problem?
Inflation
Scarcity
Economic growth
Unemployment
Which of the following is not an economic resource?
Land
Labour
Money
Capital
The basic economic problem arises because:
People are greedy
There are unlimited wants but limited resources
Governments do not distribute resources fairly
Inflation reduces purchasing power
What is the study of economics mainly about?
How to make money
How society manages its scarce resources
How to avoid making choices
How businesses become rich
What are the two main branches of economics?
Demand and Supply
Microeconomics and Macroeconomics
Business and Commerce
Capitalism and Socialism
Which of the following is an example of a need?
Food
Vacation
Entertainment
Transportation
Scarcity is best defined as
A. A shortage of goods and services
B. The limited nature of society's resources
C. Not having enough money to buy something
D. When producers can't keep up with demand
Which of the following is the best example of relative scarcity?
Air
Sunlight
Clean drinking water
Seawater
What is the main difference between needs and wants?
A) Needs are things we must have to survive, while wants are things that improve our quality of life
B) Wants are more important than needs
C) Needs are only for rich people, while wants are for everyone
D) Needs are things that people desire, while wants are things people must have
Suppose you decided to play a round of golf for $50. Golf takes 4 hours to play. If you weren’t willing to play golf you would have been working and earning $30 hourly. What is your opportunity cost of playing golf?
$50
$120
$170
$200
What is the opportunity cost?
The value of the next best alternative is lost when making a decision.
The value of the best choice.
the decision that we made when we have choices.
If you decide to spend an hour watching a movie instead of studying for an exam, the opportunity cost of the choice you make is?
You missed the chance to see other movies
The entertainment you get in the movie
You're giving up time to study for the test
You don't have to pay for the movie ticket
When deciding to spend an hour studying for an exam instead of going out with friends, what is the opportunity cost of studying?
The knowledge gained from studying
The time spent studying
The enjoyment and social interaction missed by not going out
The cost of textbooks
What causes opportunity cost?
Unlimited resources
Limited resources
Principal
Limited Needs and wants
A market economy primarily relies on:
Government intervention to control production and distribution.
Customs and traditions to determine resource allocation.
The interaction of buyers and sellers in markets.
Centralized planning by the government.
Which of the following is a key feature of a mixed economy?
Complete government control over production.
No government intervention in markets.
A combination of private and government ownership of resources.
Allocation of resources based entirely on traditions.
What is the production possibilities frontier?
A method to calculate the total cost of production.
A theory explaining consumer behavior in the market.
A chart showing the relationship between supply and demand.
A graphical representation of the maximum output combinations of two goods that can be produced given fixed resources.
When the point is inside the PPF diagram, it means that:
A. It is considered to be productively efficient.
B. It is considered to be unattainable/impossible
C. It is considered to be inefficient
What is Behavioural nudge
attempts that influence a person's decision making using psychology and behavioural economics theories.
Authoritative order to do or not do something
A positive benefit that motivates a person to change their behaviour
What is classified as one of the four economic resources?
Consumption
Enterprise
Production
Trade
Which of the following is a financial disincentive?
Armrests on benches to prevent the homeless from sleeping on them
A law making it illegal to text while driving
Toll/road tax during peak periods
Education subsidies
Which of the following answers the question "What to produce?" in a market economy?
Deciding how many workers should be hired.
Deciding which goods and services should be produced.
Deciding where goods will be sold.
Deciding how to advertise products.
Which of the following might cause a movement of the PPC inwards?
Supply chain shortage of resources
Introduction of new technology into the production process
Workers being sent to a training course
The production possibilities frontier (PPF) shows the maximum combinations of two goods that can be produced:
With the given resources and technology
With no government intervention
When there is full employment in the economy
Without any trade or specialization
In a command economy, economic decisions are primarily made by:
The government
Private individuals
Market forces
A mix of private and government decisions
Incentives are used in economics to:
A) Discourage individuals from making decisions
B) Encourage people to make decisions that align with their interests
C) Increase government spending
D) Eliminate the need for markets
Behavioral economics focuses on how:
individuals make rational decisions
psychological factors affect economic decisions
markets reach equilibrium
government policies influence the economy
Which of the following statements is true regarding economic decision-making according to behavioural economics?
A) People make decisions based solely on rational calculations
B) Psychological factors influence economic decisions
C) Economies function when markets are perfectly competitive
D) People always act in their self-interest
Refer to table 1. What is the opportunity cost of moving from option C to E
4000 iphones
1000 laptops
4000 laptops
Why aren't models perfect reflections of reality?
Human beings and behaviours cannot be predicted, and contain assumption; however, the assumption in the life is much more complicated.
Models are a complex systems, and really struggle on analysis.
An economic model can be only a verbal description, cannot be a numerical table, a graph or a mathematical equation.
All of the above.
Which concept is NOT directly illustrated by the PPF?
Relative Scarcity
Choice
Opportunity Cost
Demand for a specific good.
How does a production possibilities frontier (PPF) illustrate scarcity?
By demonstrating infinite production capabilities
By showing unlimited resources
By depicting the maximum output combinations given limited resources
By indicating constant opportunity costs
Which of the following best describes a command economy?
Decisions are made by individual consumers and producers.
Economic activities are based on customs and traditions.
The government makes all major economic decisions.
Resources are allocated through market forces.
What is the main purpose of a production possibilities frontier (PPF)?
To demonstrate the effects of inflation on an economy.
To illustrate the concept of unlimited resources.
To show the maximum possible output combinations of two goods.
To depict the distribution of income in a society.
Which of the following is a characteristic of a market economy?
Equal distribution of resources by the state
Production decisions made by tradition
Resource allocation based on supply and demand
Centralized decision-making by the government
How does a mixed economy differ from a command economy?
A mixed economy is entirely controlled by the government
A mixed economy combines private and public sector roles
A mixed economy has no government intervention
A mixed economy relies solely on market forces
