1.1 Business Activity (Quiz Version) (15)

Which of these is the best definition of the ‘economic problem’?

• People do not have enough money.
• There are not enough resources to satisfy people’s wants.
• There are too many factors of production.
• There are not enough wants to meet needs

Which of the following is NOT a factor of production?

• oil reserves
• factory buildings
• skilled labour
• retained profit

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

• everything else I could have bought for $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:

• Large tasks are broken down so that workers can specialise on just one smaller task and become better at it.
• Large tasks are broken down so that workers can become specialist in all jobs.
• Large tasks are broken down so that all firms only have one worker
• No workers are employed as machines always do all the work.

One of the drawbacks to division of labour is that:

• output and efficiency falls
• workers spend time on training to do several different jobs
• workers can become bored through concentrating on one job
• no machinery is used and this slows down production.

The best definition of a business is:

• Any organisation owned by the government
• An organisation that buys products from other firms and sells them to consumers
• An organisation that produces only those goods and services that satisfy people’s basic needs
• An organisation that combines the factors of production to make products that satisfy people’s wants.

All of the following are common business objectives (aims) except:

• to grow
• to pay taxes
• to survive
• to make profits

Which of the following is NOT one of the benefits of business growth?

• Sales will increase.
• Market share will probably rise.
• The business will probably become more secure.
• Management will have less work to do.

Which stakeholders in a business are paid a salary by the business and lead and direct it?

• the government
• the workers
• the consumers
• the managers