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WorksheetsEconomics SS1. First Term Examination. 2025/2026
Total questions: 30
Worksheet time: 15mins
The difference between a good and a service is that:
Goods are available in unlimited quantities and services are not
Goods are tangible and services are not
Services are available in unlimited quantities and goods are not
Goods help satisfy unlimited wants and services do not
A want is
Something we have to have in order to survive
Something we would like to have to make our life better
A need is
Something we have to have in order to survive
Something we have to have to make our life better
Why will scarcity continue to be a problem in the future?
Prices will rise
Resources will always be finite
Needs will decrease in the future
World population will fall
Why does scarcity exist?
Each year workers tend to produce less than previously
Machines wear out in time
There are not sufficient resources to meet everyone's wants
There is a limit to people's wants
What is the basic economic problem?
the value forgone from the next best alternative
the fact that the world has finite resources but humans have infinite wants
too many resources
the fact that the world has infinite resources but humans have finite wants
Andrea has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?
a trip to the beach
a trip to the mountains
Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?
fishing with a friend
going to a concert
When a business decides to purchase two new tractors, what is the opportunity cost?
The potential revenue and profitability lost by not being able to take on another project
The cost of purchasing the tractors
The value of the option taken by purchasing the tractors
The value of the option not taken by purchasing the tractors
What is an opportunity cost?
The value of the option taken when a business makes a decision
The potential revenue and profitability lost by not being able to take on another project
The value of the option not taken when a business makes a decision
The cost of purchasing new equipment for a business
_________________ is the using of goods and services.
Consumption
Resources
Scarcity
Production
_______________ ______________is what is given up when a choice is made (the second best alternative).
Opportunity cost
Supply and Demand
Free Market
Mixed Economy
Which is NOT a land resource?
Water
Factories
Oil
Lumber
What is an economy?
government controls all means of production within the country
an organized way a nation provides for its citizens
the way a government makes money
the way citizens make products from natural resources
How does economics relate to scarcity?
Scarcity is irrelevant to economic theories and models.
Economics eliminates scarcity by creating more resources.
Economics relates to scarcity by analyzing how limited resources are allocated to satisfy unlimited wants.
Economics focuses solely on the distribution of wealth without considering resources.
Which of the following is not a basic economic problem that an economy must strive to solve?
Deciding what goods and services to produce
Determining the most efficient method of production
Deciding what ought to be the priority of the government
Deciding for whom the production of goods should be produced
What is the fundamental economic problem faced by all countries?
Inflation
Unemployment
Scarcity
Economic recession
Which of the following is not within the scope of economics
Resource allocation
Scarcity
Building a successful business
What production should take place
Economics is a science because it __________
uses biological methods to study human behaviour
uses scientific methods to study human behaviour
uses research approach to study human behaviour
uses experimental pedagogy to study human behaviour
Scarcity in economics generally refers to
A period of existing supply of resources
Monopolization of existing supply of resources
The control of outlets to sell goods
All of the above
Economics is a science which deals basically with
The factors of production
Allocation of scarce resources
Oil exportation
National income
Bisi needs a book costing #10.00 and a hat costing #10.00. if Bisi buys the book instead of the hat,the opportunity cost of his choice is the
Book
Hat
#10.00
Scale of preference
Economics is the study of human behaviour as it is related to the
Ends and scarce means
Efficient allocation of resources
Operation of companies
Production
Choice involves opportunity cost because
A good gives different utility
Available resources are inadequate
There are many goods to select from
Not all goods have the same price
Choice is necessary because resources
Are available
Can be found everywhere
Are constant
Are scarce
The definition of economics as the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses was given by
Adams Smith
David Ricardo
Lionel Robbins
Robert Griffen
The basic economic problem of the society include
What to produce, how and for whom to produce
How to sell
When to produce
Where to produce
Equitable distribution of income means
Fair and just distribution
Increase in gap between poor and Rich
Increase in money
Abundant resources
The following are the uses of statistical analysis in economics except
Useful for decision making
Easy interpretation of economic terms
Testing of economic theory
Misunderstanding data
