WorksheetsScarcity, Choice, and Productivity Quiz
Total questions: 15
Worksheet time: 11mins
What is the term for splitting the production process into small, individual tasks?
Specialization
Efficiency
Division of Labour
Scarcity
A farm must decide whether to sell its harvest of vegetables at a high-end organic market or donate it to a local food bank. This decision is primarily answering the economic question of:
WHAT to produce?
HOW to produce?
FOR WHOM to produce?
WHEN to produce?
'Using the smallest amount of resources to produce the greatest amount of output' is the definition of efficiency. Which scenario below is the best example of a business improving its efficiency?
A factory doubles its workforce and doubles its output.
A pizza shop finds a new oven that bakes pizzas in 5 minutes instead of 10, using the same amount of energy.
A software company moves to a larger, more expensive office building.
A car company increases the price of its cars to make more profit per vehicle.
Considering both the advantages and disadvantages, why might a company decide against further specializing the tasks of its workers?
The company has solved the problem of scarcity.
The company has decided to produce a different product.
The potential losses from worker boredom or production halts due to absenteeism might outweigh the gains in efficiency.
Specialization always leads to lower productivity in the long run.
How are the concepts of scarcity and the three basic economic questions fundamentally linked?
Scarcity creates an abundance of resources, making the three questions irrelevant.
Scarcity is the reason why societies are forced to answer the three questions of WHAT, HOW, and FOR WHOM to produce.
The three questions of WHAT, HOW, and FOR WHOM to produce are the cause of scarcity.
Scarcity only affects the question of WHAT to produce, not the others.
What is the fundamental economic problem?
A lack of consumer demand
High taxes
Scarcity
Inflation
A bakery finds a way to bake 100 loaves of bread using the same amount of flour, yeast, and labor that it previously used to bake only 80 loaves. This improvement is best described as an increase in:
Scarcity
Specialization
Productivity
Consumer goods
The text states that a disadvantage of specialization is that it 'can lead to worker boredom.' Which other disadvantage is specifically mentioned?
It decreases the quality of the product.
It requires more managers.
Production might halt if one specialized worker is absent.
It makes the company less profitable.
A car manufacturer reorganizes its assembly line so that each worker is responsible for installing only one specific part, like the windshield or a door. This is a direct example of:
Increasing scarcity
Division of Labour
Determining FOR WHOM to produce
Defining consumer goods
The text defines technology as 'the use of technical knowledge to create new products or improve production efficiency.' If a company adopts a new technology that makes its workers more productive, how would this directly impact the 'HOW to produce?' question?
It would change the types of goods the company produces (WHAT).
It would change the methods and resources used in the production process (HOW).
It would change the target market for the goods (FOR WHOM).
It would eliminate the problem of scarcity.
A society must decide whether to use its limited steel reserves to build a new hospital or a new sports stadium. This dilemma directly relates to which of the three basic economic questions?
WHAT to produce?
HOW to produce?
FOR WHOM to produce?
WHY to produce?
A company improves its efficiency by reducing waste, allowing it to produce the same number of units with fewer raw materials. How would this improvement most likely affect its productivity?
Productivity would decrease because the quality of the product might suffer.
Productivity would increase because the company is getting more output from a smaller input of resources.
Productivity would remain unchanged because the number of units produced stayed the same.
Productivity is not related to efficiency.
Which of the following is the correct definition of scarcity?
Having more resources than are needed.
The combination of limited resources and unlimited wants.
The study of how people make money.
An abundance of goods and services.
Which of the three basic economic questions deals with deciding whether to use more machines or more workers in a factory?
WHAT to produce?
HOW to produce?
FOR WHOM to produce?
WHERE to produce?
What term describes 'the level of output that results from a given level of input'?
Efficiency
Specialization
Productivity
Division of Labour
