Basic Economic Problem

Which of the following is not included in the study of economics?

• Scarce resources

• Choice

• What people should buy

• Opportunity cost

Which of the following BEST describes the basic economic problem?

• Limited needs and unlimited resources

• Unlimited wants and scarce resources

• Limited incomes and spending power

• Unlimited choices of consumer goods

Which of these is a human resource?

• A production worker

• A forest

• A field of wheat

• A factory

Which of the following is NOT a scarce resource?

• Air

• Land

• Money

• Oil

Which of the following is the reward to an entrepreneur?

• Profit

• Wages

• Revenue

• Employment

In the study of economics, resources are also known as:

• Workers and machines

• Raw materials

• Factors of production

• Profit

According to the meaning of opportunity cost, what is sacrificed when a decision is taken?

• An identical alternative

• Any alternative

• The least valuable alternative

• The next best alternative

Which statement best explains why drought is an economic problem?

• Rainfall cannot be predicted easily

• The effects of drought require government action

• Droughts cannot be prevented

• Water is a scarce good

Which of the following illustrates the sustainable use of resources?

• Discovering new sources of oil for fuel

• Recycling soft drink bottles

• Burying rubbish in landfill

• Replanting trees following use for fuelwood

Which of the following is NOT a decision made by producers?

• Which goods or services to produce?

• Where to locate a factory

• How to produce the goods or services

• How much of the good or service will be bought?