Edexcel AS Microeconomics Quiz

What is the basic economic problem?

• Limited resources to satisfy limited wants

• Unlimited resources to satisfy unlimited wants

• Limited resources to satisfy unlimited wants

• Unlimited resources to satisfy limited wants

What is the definition of 'Need'?

• The added satisfaction that a consumer gets from having one more unit of a good or service

• The minimum that is necessary for a person to survive as a human being

• The benefit of the next best alternative forgone

• Desires for the consumption of goods and services

What does 'Ceteris paribus' mean?

• All things being equal

• Statements that cannot be refuted or supported since it is a value judgement

• Statements that can be supported or refuted by evidence

• A curve that shows the maximum combination of two goods produced by a country using all resources over a period of time with current technology

What are the factors of production?

• Medium of exchange, Measure of value, Store of value, Method of deferred payment

• Rent, Wage/salary, Interest, Profit

• Capital, Land, Labour and Enterprise

• Goods and services, Consumer goods, Capital goods, Financial market

What are economic goods?

• Resources that can be exploited over and over again because they have the potential to renew themselves

• Resources that once exploited cannot be replaced

• Goods that are scare because their uses have an opportunity cost

• Goods that are unlimited in supply and therefore have no opportunity cost

What are non-renewable resources?

• Resources that can be exploited over and over again because they have the potential to renew themselves

• Resources that once exploited cannot be replaced

• Goods that are scare because their uses have an opportunity cost

• Goods that are unlimited in supply and therefore have no opportunity cost

What are capital goods?

• A point of possible change

• Goods that are used in the production of other goods, such as factories and offices

• Goods and services that are used by people to satisfy their needs and wants

• The added satisfaction that a consumer gets from having one more unit of a good or service

What is the role of financial market?

• Facilitate saving, make funds available to businesses and individuals, facilitate the exchange of goods and services, provide forward markets in commodities and currencies, provide a market for equities

• Satisfaction gained from consumption of goods and service

• The quantity of goods a consumer is willing and able to buy at different prices over a given period of time

• The added satisfaction that a consumer gets from having one more unit of a good or service

What is the measure of value for money?

• Medium of exchange

• Store of value

• Measure of value

• Method of deferred payment

What is a planned economy?

• An economic system where all resources are allocated by the government, with no markets

• Satisfaction gained from consumption of goods and service

• An economic system where resources are partly allocated by the market and partly by the government

• An economic system where all resources are allocated through the market forces of demand and supply(price mechanism), with no intervention by the government