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Basic concept of economics

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

Scarcity is a problem:

a)

that only poor people face.

b)

because human wants are limited while resources are unlimited.

c)

because human wants are unlimited while resources are limited.

d)

only in third world countries.

2.

Labour, land and capital are called:

a)

goods and services.

b)

entrepreneurship.

c)

outputs.

d)

factors of production.

3.

Which of the following is a microeconomics topic?

a)

The unemployment rate.

b)

The inflation rate.

c)

The economy’s growth rate.

d)

The price of apples.

e)

Forecasts of a recession next year.

4.

The production possibilities frontier shows that:

a)

scarcity can be eliminated.

b)

all output combinations are possible

c)

an economy that is operating efficiently can have more of one good without giving up some of another good.

d)

some of one good must be given up to get more of another good in an economy that is operating efficiently.

5.

A point outside a production possibilities curve reflects:

a)

efficiency.

b)

an impossible choice.

c)

inefficiency.

d)

unemployment.

6.

Which of the following moves from one point to another in Exhibit 2.7 would represent an increase in economic efficiency?

a)

Z to W.

b)

W to Y.

c)

Z to X.

d)

X to W.

7.
Opportunity Cost is best defined as
a)
The best rejected alternative you give up when making a decision 
b)
The price you pay to purchase something 
c)
The benefit you gain by making a decision 
d)
The amount of debt you take on by making a decision 
8.

Calculate the opportunity cost if choice A to D?

a)

Additional 90 tons of steel

b)

Letgo 90 tons of wheat

c)

Additional 70 tons of steel

d)

Letgo 65 tons of wheat

9.

Calculate the opportunity cost of choice B to A

a)

Let go 55 tons of steel

b)

Let go 15 tons of wheat

c)

Additional 20 tons of wheat

d)

Additional 55 tons of steel

10.

Which scenario contributes towards the shifting of the curve in the picture above?

a)

When a country is struck by a natural disaster, natural resources are either exhausted or reduced due to the incident.

b)

A population increase leads to increasing numbers of buyers and school admission.

c)

Economic decline due to Covid 19

d)

Inflation occurs and the price of goods had increased to support Malaysia's economy