Economics Revision Pt. 2

Which of these terms gives the general definition of the (Economic Problem)?

• Bigger families, less food, starvation.

• Falling supply, rising demand, shortage.

• Higher population, fewer available jobs, unemployment.

• Limited resources, unlimited needs, scarcity.

What is the best example of the existence of the economic problem?

• A government providing houses for all homeless people

• A small police force having a long list of unsolved crimes.

• A student giving his homework at the last possible deadline.

• A driver completed his trip without fueling.

Why "Choices" are an important part of the economic problem?

• They are needed to achieve equilibrium

• because resources have many uses

• Producers provide many goods to choose from

• income is unequal among consumers

Why the economic problem will never be solved?

• People will always want more than they can produce

• People will never agree on what is the best economic system

• Income will always be unevenly distributed

• There will always be unemployment

An unemployed man accepted a new job. What is the opportunity cost of this decision?

• The cost needed to travel to work

• The new salary he is expected to receive

• the free time he lost when employed

• Training needed for his new job

Economics is mainly concerned with...

• using scarce resources for unlimited wants

• studying inflation and unemployment

• level of government spending

• production of goods and supplies

Which of these statements is correct?

• Managers of a company are called enterprise

• money used to finance a project is called capital

• Owner of a company is called labor

• wool collected from a sheep is called land

Which one of those is NOT a factor of production?

• Farm

• Farmer

• Farmer's bank account

• Farmer's old tractor

An increase in the number of robots that assemble cars in car factories is an increase of....

• Capital

• Enterprise

• Labor

• Land

A Café owner hired 2 people to make sandwiches for the customers. Other than (Labor), which factors of production are involved in this activity?

• Capital, enterprise, and land

• Capital and land

• Capital and enterprise

• Enterprise and land