ECON CSEC May-June 2021 1-10

In economics, the excess of human wants over existing resources is known as

• Greed

• Scarcity

• Opportunity cost

• Economic decline

An ‘economy’ is BEST described as

• A system of production, distribution and consumption

• A system where suppliers produce all the goods and services needed by consumers

• The utilization of resources by manufacturers to produce goods and maximize profits

• A system whereby all the goods and services used by citizens of a country are provided by the government

Item 3 refers to the following diagram which illustrates the production possibility frontier for an economy that is capable of producing bauxite and sugar in different combinations.

Point X on the diagram above represents

• Economic growth

• Unemployed resources

• An efficient combination

• An unattainable combination

An outward shift in the production possibility curve can be caused by an

• Increase in wages

• Increase in imports

• Improvement in technology

• Improvement in the standard of living

Economics is classified as a

• Social science

• Natural science

• Physical science

• Business science

Which of the following actions is LEAST likely to be among a government’s potential economic decisions regarding businesses?

• Increasing retirement benefits

• Passing minimum wage legislation

• Regulating the emission of toxic waste

• Identifying areas where businesses should be located

The average variable cost is

• $100

• $400

• $1,000

• $4,000

Large firms can achieve savings in unit costs as a result of advertising and packaging. These kinds of economies of scale can be classified as

• Financial

• Technical

• Marketing

• Managerial

How many units of labour produce the HIGHEST average product of labour?

• 6

• 7

• 8

• 9

Which of the following pairs of activities in a country falls under the tertiary sector?

• Banking and tourism

• Tourism and agriculture

• Banking and construction

• Manufacturing and fishing