Economics

Why does scarcity exist?

• Each worker tend to produce less than previously.

• Machines wear out with time.

• There are not sufficient resources to produce all the products people want.

• There is a limit to people's wants.

Why will scarcity continue to be a problem in the future?

• Prices will rise.

• The quantity of resources will decline.

• Wants will continue to increase.

• World population will fall.

Which factor of production's function is to make decisions and take risks?

• Capital

• Enterprise

• Labour

• Land

Which type of factor of production is a road?

• Capital

• Enterprise

• Labour

• Land

A country produces 3000 new capital goods in a week. 500 of these replace worn out capital goods. What is the net investment made?

• 500

• 2500

• 3000

• 3500

Which factor of production is the most mobile?

• Capital

• Enterprise

• Labour

• Land

What is meant by 'opportunity cost'?

• The best alternative forgone.

• The cost of the item selected.

• The cost of exploring business opportunities.

• The labour used in producing the product.

A person decides to go to the university for three years, to study economics. If he had not gone, he could have taken a job which he would have paid him $15,000 a year. After he graduates he expects to find a job paying him $40,000 a year. What is the opportunity cost of going to the university for him?

• $15,000

• $40,000

• $45,000

• $125,000

Which of the following is a free good?

• Inoculation provided without charge by the state.

• Prizes of food items given away by a supermarket.

• Recycled paper.

• Wind coming in from the sea.

What are the three questions faced by all economies?

• What to produce, when to produce it and who receives it

• What to produce, how to produce it and who receives it

• Where to produce, how to produce and when to produce

• Where to produce, when to produce and how to produce