Grade 9 quiz

What gives rise to the problem of scarcity

• a lack of money

• an uneven distribution of income

• capital equipment being greater than labour

• wants exceed resources

As an economy becomes richer, what happens to resources and wants?

• resources decrease and wants decrease

• resources decrease and wants increase

• resources increase and wants decrease

• resources increase and wants increase

which of the following is an example of factor of production 'capital'

• the money a farmer has borrowed to buy livestock

• the money the farmer has saved in the bank

• a farm worker

• tractor

Which type of factor of production can be described as a 'natural resource'

• capital

• entrepreneur

• labour

• land

A woman owns a TV which she bought for $300. She is considering buying a better model for $450. Her neighbor offers her $200 for her TV. What is the opportunity cost of her rejecting this offer?

• $100

• $200

• $300

• $450

A man presently works as a builder. His previous jobs included working as a farm labourer and a street trader. His next best-paid job is that of a carpenter, but he would rather choose to work as a gardener, if he was not a builder. what will be the opportunity cost of him working as a builder? Working as:

• a carpenter

• a farm labourer

• a gardener

• a street trader

What does a production possibility curve show?

• the amount of capital and labour in a country

• the output of two products that can be produced with the given resources

• the popularity of two products

• the price of the two products that are produced with given resources

What are the three questions faced by all economies?

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

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

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

• where to produce, when to produce and why to produce

What encourages the firms to produce what consumers demand?

• the chance to earn profit

• the chance to experience high cost of production

• the desire to attract new firms into the industry

• the desire to keep the revenue as low as possible

Who decides what is produced in a market economy?

• Consumers

• Managers

• shareholders

• the government