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 
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 
What type of factor of production is a road?
  • Capital
  • Enterprise
  • Labour
  • Land 
What is meant by 'labour' in economics?
  • Hard physical work used to produce manufactured goods 
  • Human mental and physical effort used for producing goods and services
  • Natural resources used in the productive process
  • Risk taking and organising the factors of production
Which factor of production is the least mobile?
  • Capital 
  • Enterprise
  • Labour
  • Land 
Which of the following is a free good?
  • A vaccination provided by the state without charge
  • Prizes of food items given away by a supermarket
  • Recycled paper
  • Wind coming from the sea
What does a production possibility curve show?
  • The prices of two types of products being produced
  • The quantity of capital and consumer goods that people would like to be produced
  • The maximum combination of two types of goods that can be produced with given resources.
  • The relative profitability of capital and consumer goods 
What does a point outside the PPC represent?
  • A currently unattainable position 
  • An inefficient position
  • The maximum use of resources 
  • Unused resources 
Which of these is not a decision which is made to solve the basic economic problem?
  • What to produce
  • How to produce
  • Why to produce
  • For whom to produce
What happens every time we make a decision?
  • We win!
  • We incur an opportunity cost
  • We incur an opportunity loss
  • We incur an opportunity cost of multiple other options
Define opportunity cost
  • the value forgone from the all other alternatives
  • the value forgone from the next two best alternatives
  • the value forgone from the next best alternative
  • the value gained from choosing
Which of the below is not scarce resource?
  • Oil
  • Sea water
  • Natural gas
  • Gold
A market is
  • a place where buyers and sellers come together
  • a place where people can buy goods
  • a place where buyers and sellers come together and agree a price for the exchange of goods and services.
The basic economic problem can never be eliminated.
  • true
  • false
A need is
  • something we have to have in order to survive
  • something we have to have to make our life better
A want is
  • something we have to have in order to survive
  • something we would like to have to make our life better
_______ is another word for Market Economy. 
s-3 sb-4-The Basic Economic Problemimg_no 92.jpg
  • Capitalism 
  • Communism
Which of the following would be an example of human capital? 
  • The amount of workers who work in a Nike factory
  • The skills of the shoe designers at Nike 
  • Philip Knight, the CEO of Nike 
  • The land that the Nike headquarters is located on in Beaverton Oregon
 The difference between a good and a service is that:
  • Goods are available in unlimited quantaties and services are not 
  • Goods are tangible and services are not 
  • Services are available in unlimited quantaties and goods are not 
  • goods help satisfy unlimited wants and services do not
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