W1 Post assessment Gr9

If I buy a book for $10 then the opportunity cost is:

• everything else I could have bought with the $10

• $10

• the benefit lost from not being able to consume the next best option

• the benefit gained from buying the book

Making choices is necessary in all economic systems because:

• there are so many products that we cannot use them all at once

• the government has so much money that it does not know what to do with it

• there are so many resources compared to people’s needs that we have to choose

  which ones not to use

• there are so many wants compared to scarce resources that we have to decide what to

  produce.

Division of labour can be defined as:

• workers specialise on just one task and become more efficient at it

• workers become specialist in all jobs

• all firms only have one worker so jobs are divided between the firms

• no workers are employed as machines always do all the work

If a tailor buys in cloth for $25 and makes a suit that he sells for $65 then he has:

• made a profit on the suit of $40

• added $40 of value to the material

• incurred no opportunity cost in making the suit

• used his own labour as the only factor of production in making the suit

What is meant by 'scarcity' when referring to the economic problem?

• unlimited wants and unlimited resources

• unlimited wants and limited resources.

• limited wants and limited resources.

• unlimited wants and no resources.