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Worksheetseconomics revisions
Total questions: 71
Worksheet time: 36mins
Of the four factors of production, which of these are not a factor of production?
Land
Capital
Development
Labour
The term "derived demand" means...
demand for secondary products only
demand that is dependent on government supplying the product
demand that arises because the supply of the good is reduced
demand that arises because there is demand for another good.
Which of the following is a possible cause of diseconomies of scale?
similar businesses in the area
easy access to suppliers
greater distance between senior staff and shop floor workers
abundance of skilled labour
What of the following is a feature of a monopoly?
There is plenty of competition
Price is set freely by the consumers
The product sold is unique
There are very few barriers to entry
The term "economies of scale" refers to ...
the average costs of production decreasing as a firm expands
the average costs of production rising as a firm expands
the average costs of production remaining the same as a firm expands
the average costs of production at first decreasing, then increasing, as a firm expands
The introduction of a minimum wage in a labour market will:
raise employment and lower the wage rate
raise the wage rate and increase employment
raise the wage rate and decrease employment
reduce the wage rate but boost employment
Which is not a likely disadvantage of a small firm?
Higher costs
Difficulty attracting quality staff
Vulnerability to competition (especially from larger companies)
Lower overall wage costs
What does Gross Domestic Product
mean?
The total value of all goods and services a country imports.
The total value of all goods and services a country exports.
The total value of all goods and services produced within a country in one year.
The net loss in profits within a country due to imports.
The___________ a country’s GDP, the better the country’s standard of living.
lower
greater
smaller
answers 1 and 3 are correct
What are natural resources?
resources that are gone from nature
resources that are manufactured for the environment
resources that are considered worthless
materials or substances that occur in nature and can be used for economic gain.
What does human capital mean?
the place where the most people live within a country
the place where the most work is performed within a country
the people who perform labor (work)
the building where most people work in a country or state
Why should countries invest in developing human capital?
because the more people you have working in one area like a capital the more productive it will be
it leads to a lower GDP
it leads to lower literacy rate
investment in the education and skills training of people creates a smarter and more productive workforce, which relates to a higher GDP.
What are capital goods?
goods that are produced in the capital
the factories, machinery, and technology used to produce goods and services
goods that are produced without natural resources
goods that are produced by the government
Between 2014 and 2015 the Polish economy expanded at a rate of 3.3%.What necessarily follows from this statement?
There was increased demand which caused inflation.
The cost of living rose by 3.3%
There was positive economic growth
The output of the industrial sector rose by 3.3%
What will result in the short run from rising unemployment in an economy?
The government’s budget deficit will fall.
Any existing inflationary pressure will be reduced.
Potential output will fall.
The economy’s production possibility curve will shift inwards
A country investing in education
Human Capital
Capital Good
A country investing in newer technology
Human Capital
Capital Good
Economists _____ of a country's economy by its gross domestic product (GDP)
measure the health
goods & services produced
others do not
per person
weaker economies
A country's GDP is the total dollar value of all _____ in one year.
productive resources
goods & services produced
others do not
per person
weaker economies
GDP is often measured as "GDP per capita" (_____)
productive resources
goods & services produced
others do not
per person
weaker economies
Countries need _____ to fill jobs within the economy
highly-skilled workforce
skilled workers
different kinds
different set of skills
education
A government decides to increase the wages paid to the employees of state-owned enterprises. What will increase immediately, as a result of this decision?
Government expenditure
A budget surplus
Unemployment
Unsold goods and services
What type of product is education?
An inessential good
An inferior good
A merit good
A public good
In what type of economy, are most workers employed by the government?
Free enterprise
Market
Mixed
Planned
A government decides to limit the wage increase of state employee. What is it most likely trying to achieve?
A reduction in employment
A reduction in inflationary pressure
An increase in the wages paid to private sector employees
An increase in the attractiveness of public sector employment relative to private sector employment
Which of the following is a macroeconomic aim of the government?
A fall in national output
High unemployment
Imports exceeding exports
Price stability
Which of the following could increase a country’s productive potential?
An improvement in education
A reduction in the retirement age
Retention of worn out machinery by firms
Migration of workers to other countries
What is meant by potential economic growth?
an increase in the total demand in the economy
an increase in productive capacity of an economy
the economy’s export revenue being greater than its import expenditure
the economy operating at full employment
which of the following is most likely to increase demand in the economy?
A reduction in government expenditure
A reduction in the rate of interest
A rise in a budget surplus
A rise in income tax
When does a budget deficit occur?
When imports exceed exports
When government expenditure is greater than government revenue
When interest rates are falling
When the money supply is rising
Which type of government policy would include reform of trade unions?
Competition policy
Fiscal policy
Monetary policy
Supply-side policy
What is most likely to conflict with a government’s aim of full employment?
Lower income tax
Lower spending on imports
Higher government expenditure
Higher interest rate
What is most likely to happen due to economic growth?
A fall in the standard of living
A fall in the tax revenue
A rise in employment
A rise in government expenditure on unemployment benefits
Which of the following may reduce the effectiveness of a government policy measure?
Accurate information
An absence of economic problems in other economies
An absence of policy conflicts
A time lags
What is meant by a regressive tax?
A tax that falls in line with inflation
A tax that reduces government revenue over time
A tax that places a greater burden on the poor than the rich
A tax that is replaced by one which generates more income
Which of the following is a possible cause of demand-pull inflation?
An increase in government expenditure, not matched by a rise in taxation
An increase in the price of oil, not matched by a fall in the price of other raw materials
A rise in wages, not matched by an increase in productivity
A rise in imports, not matched by a rise in exports
The price level rises by 8% as a result of a rise in raw material costs. This is an example of;
Cost-push inflation
Demand-pull inflation
Hyperinflation
Monetary inflation
Which of the following must happen as a result of inflation?
A decline in uncertainty
A fall in the value of money
An improvement in the balance of payments
An increase in savings
A country’s steel industry is closed down, as buyers switch their purchases of steel to another country. What type of unemployment will occur as a result of this?
Cyclical
Frictional
Seasonal
Structural
The basic economic problem is …
Meeting increased demand for goods and services with limited resources
How to satisfy limited wants and needs with unlimited resources
The interaction of market forces to satisfy unlimited needs and wants
How to allocate scarce resources to satisfy unlimited needs and wants
An olive farm in northern Italy produces organic olive oil which it sells on its website to specialist shops around the world. An example of primary industry activity is ...
bottling the olive oil
Crushing the olives to extract the oil
Growing olive trees
Selling the oil over the internet
Which are three basic economic questions addressed by an economy?
For whom should production take place?
When should production take place?
What production should take place?
How should production take place?
Which term is used to describe non-physical items, such as haircuts, bus journeys and internet access?
Factors of production
Goods
Services
Opportunity cost
What is the generic name for the human resources in the production process?
Capital
Enterprise
Labour
Land
Economic goods example
Public domain web wage
Seawater
the sun light
Housing
Production of any good or service requires resources known as ...
Factors of production
land
production facitilies
raw materials
Which refers to the willingness and ability of a person to relocate from one area to another for employment purposes?
Geographical mobility
Incentives to work
Occupational mobility
Regional unemployment
Which statement best describes Opportunity Cost
The next best alternative chosen
The next best alternative forgone
The best alternative chosen
The worst alternative forgone
Which of the following is a factor affecting Demand
Advertising
Production Costs
Indirect Taxes
Subsidies
Which of the following is NOT a factor of demand
Price of complementary goods
Price of Substitutes
Subsidies for Producers
Consumer Incomes
An increase in the cost of microprocessors is likely to do what to the supply of of computers
Shift supply to the right
Shift supply to the left
Shift demand to the right
Shift demand to the left
What is likely to happen to the Equilibrium Price & Quantity for Product A following and increase in Producer Subsidies
Price Rises & Quantity Rises
Price Rises & Quantity Falls
Price Falls & Quantity Rises
Price Falls & Quantity Falls
What is likely to happen to the Equilibrium Price & Quantity for Product A following an increase in advertising for Product A
Price Rises & Quantity Rises
Price Rises & Quantity Falls
Price Falls & Quantity Rises
Price Falls & Quantity Falls
What is likely to happen to the Equilibrium Price & Quantity for Product A following a FALL in the price of one of its COMPLEMENTS
Price Rises & Quantity Rises
Price Rises & Quantity Falls
Price Falls & Quantity Rises
Price Falls & Quantity Falls
What is likely to happen to the Equilibrium Price & Quantity for Product A following the introduction of new technology in the production process
Price Rises & Quantity Rises
Price Rises & Quantity Falls
Price Falls & Quantity Rises
Price Falls & Quantity Falls
What do economists mean by the term "scarcity"?
Having too few or too little of resources
Having too many resources
Having just enough resources
Having the correct amount of resources
A country has a surplus of oil, coal, and precious metals. In what industry should this country specialize?
Agriculture and Farming
Mining
Technology
Manufacturing
