Quiz Econ 1

What is the basic economic problem faced by all societies?

 

•   Achieving happiness

• An inefficient economic system

• Rewarding factors of production

• Scarcity of resources

Which product is most likely to be classified as a free good?

• Birthday presents

• Public transportation

• Seawater

• State (government-funded) education

Which option is not an example of capital as a resource?

• Computers

• Factory

• Machinery

• natural Resources

Which event is most likely to cause an increase in the average wage of labour?

• A decrease in the national minimum wage

• An increase in the national minimum wage

• Government tax policies

•   Net migration of labour into the country

   

The Chinese government is concerned about the level of poverty and the need for more resources in low-income regions of the country. As a result, it is increasing its expenditure in those regions and reducing it in high-income regions. Which economic concept does this government policy illustrate?

• Diseconomies of scale

• Market Forces

• Opportunity Cost

• Specialisation

An airline needs people and equipment. These can be divided into factors of production.

What is allocated to its correct factor of production

• A

• B

• C

• D

The diagram shows a production possibility curve (PPC) and a number of output combinations for tea and coffee

• U, V, W, X

• U, V, X, Y

•   U, V, X, Z

• V, X, Y, Z

Which of the following is most likely to cause an inwards shift of a country’s

production possibility curve?

•  Natural disaster in the country

• An increase in the quantity of factors of production

• Better quality of education and technology

• Higher opportunity costs of production