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WorksheetsYear 10 ECONS 1stT Exam
Total questions: 49
Worksheet time: 47mins
Economics is best defined as the study of how
money is made and spent
scarce resources are allocated to satisfy human wants
governments control prices
businesses maximize sales
The central problem that economics seeks to solve is
inflation
scarcity and choice
unemployment
taxation
Which of the following best explains why economics is regarded as a social science?
It deals with machines and technology
It studies human behaviour in relation to scarce resources
It is only concerned with government policies
It focuses on historical events
"Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses" was defined by
Adam Smith
John Maynard Keynes
Lionel Robbins
Alfred Marshall
Economics is regarded as a science because it
uses controlled experiments like physics
applies logical and systematic methods to study economic phenomena
deals only with material wealth
predicts human behaviour with 100% accuracy
The feature that makes economics an art is that it
relies on laws and principles
provides practical solutions to economic problems
uses mathematical models only
studies past events
Economics is classified as a social science because it studies
natural resources
human behaviour in society
chemical reactions
astronomical phenomena
Which of the following is NOT a characteristic of economics as a science?
It uses observation
It formulates theories and laws
It conducts controlled laboratory experiments in all cases
It tests hypotheses
The term "scale of preference" refers to
a list of wants arranged in order of importance
the total amount of money available for spending
the price list of goods in the market
government budget allocation
Opportunity cost is best described as
the money cost of acquiring a commodity
the cost of producing a commodity
the value of the next best alternative forgone
the total cost of production
Which of the following illustrates the concept of choice?
Buying a car with unlimited funds
Deciding between buying a textbook or a phone with limited money
Receiving free education from the government
Producing goods without cost
Wants are said to be insatiable because
resources are limited
human desires keep increasing
prices are high
production is low
To an individual, opportunity cost is important because it helps in
maximizing profit
making rational choices among alternatives
reducing taxes
increasing income
A firm considers opportunity cost when deciding to
pay higher wages to workers
use its profit to expand production or pay dividends
borrow money from the bank
import raw materials
The government applies the concept of opportunity cost when it decides to
print more money
allocate funds between building roads and hospitals
increase the salaries of all civil servants
reduce import duties
Opportunity cost is zero when
resources are scarce
there is only one alternative use of a resource
there are no alternative uses for a resource
the resource is very expensive
The fundamental economic problem faced by every society is
how to achieve equitable distribution
scarcity of resources relative to wants
how to control inflation
how to increase exports
"What to produce?" in an economy refers to
the choice between consumer and capital goods
the method of production
the location of production
the price of goods
"For whom to produce?" deals with the problem of
income distribution
choice of production technique
allocation of resources
location of industries
"How to produce?" involves deciding between
labour-intensive and capital-intensive techniques
local and foreign goods
public and private ownership
wholesale and retail trade
Which of the following is a basic tool for economic analysis?
Graphs and tables
Political manifestos
Historical novels
Weather forecasts
A production possibility curve is used to illustrate
opportunity cost and choice
price mechanism
demand and supply
inflation rate
An econometric model in economics primarily uses
historical data only
mathematical and statistical techniques
opinions of experts
government policies
The use of charts, graphs and tables in economics helps to
complicate economic analysis
present data in a simplified and understandable form
replace economic theories
predict future political events
Primary data can be collected through
newspapers
questionnaires and interviews
textbooks
internet articles
A frequency distribution table is used to
summarize raw data
calculate national income
forecast inflation
determine exchange rates
Which of the following is an advantage of a pie chart?
It shows trends over time
It clearly shows proportions or percentages of a whole
It is used for large data sets
It compares two variables
Secondary data are obtained from
direct interviews
already existing sources like journals and reports
personal observation
field experiments
The theory of production explains the relationship between
inputs and outputs
demand and supply
cost and revenue
price and quantity
In the short run, at least one factor of production is
variable
fixed
free
unlimited
The law of diminishing returns applies when
all factors are increased proportionally
additional units of a variable factor yield less additional output
technology improves
the scale of production changes
Total product starts to fall when
marginal product becomes zero
marginal product becomes negative
average product is maximum
fixed cost increases
Which of the following is a characteristic of land as a factor of production?
It is mobile
Its supply is fixed
It can be improved by training
It depreciates with use
The reward for land as a factor of production is
interest
wage
rent
profit
Land is said to have
diminishing marginal returns only
a fixed supply and is geographically immobile
unlimited supply
high occupational mobility
Economic rent arises because land
is mobile
has alternative uses
is limited in supply and has differing fertility
can be manufactured
The reward for labour as a factor of production is
rent
interest
wages and salaries
profit
Which of the following increases the efficiency of labour?
Poor health
Education and training
Low wages
Long working hours
Labour is said to be mobile when it can
increase in supply
move from one occupation or place to another
be stored for future use
work without tools
Division of labour leads to
increased cost of production
greater specialization and higher productivity
unemployment
lower wages
The reward to land as a factor of production is (A) Profit (B) rent (C) interest (D) wage
The study of Economics becomes necessary because of the (A) large population size of the world (B) Scarcity of resources (C) opportunity cost of goods and services (D) need to satisfy every desire of man.
The reward to capital as a factor of production is (A) rent (B) wage (C) Interest (D) Commission
Mining is an example of (A) tertiary production (B) Primary production (C) Secondary production (D) advanced production
Human wants are unlimited because (A) Production is inadequate (B) resources have alternative uses (C) new wants always arise (D) resources are limited
A basic economic problem of any society is (A) High level of illiteracy (B) irregular power supply (C) population growth (D) resource allocation
Which of the following is related to resource allocation in an economy? (A) How to produce (B) What to produce (C) For whom to produce (D) Efficient use of inputs
The action of government to forgo road construction in order to provide more health facilities denotes (A) sound economic decision (B) Opportunity cost (C) Practicable government policy (D) Scale of preference
The sum of items divided by the number of items is the (A) frequency (B) mean (C) median (D) Mode
