Economic Problems Quiz

What is the economic problem concerned with?

• Unlimited resources and limited wants

• Scarce resources and unlimited wants

• Unlimited resources and unlimited wants

• Scarce resources and limited wants

What are the causes of the economic problem?

• Limited Wants, Unlimited Means, Single Use

• Unlimited Wants, Limited Means, Alternative Uses

• Unlimited Wants, Unlimited Means, Alternative Uses

• Limited Wants, Limited Means, Alternative Uses

What is the central problem of an economy related to?

• When to Produce and Where to Produce

• What to Produce and How Much to Produce

• Why to Produce and Who will Produce

• How to Produce and How to Sell

What does the Production Possibility Curve show?

• Different combinations of goods that can be produced with unlimited resources

• Different combinations of goods that can be produced with given resources

• Different combinations of goods that can be produced with limited technology

• Different combinations of goods that can be produced with unlimited technology

What is the solution to achieving fuller utilization of resources?

• Underutilization of resources

• Efficient utilization of resources

• Overutilization of resources

• Fuller as well as efficient utilization of resources

In a centrally planned economy, the central problems are solved by:

• Market forces

• Foreign investments

• Government planning

• Private enterprises

What does a Capital Intensive Technique focus on?

• Utilizing more capital than labor

• Utilizing more labor than capital

• Utilizing only human resources

• Utilizing only natural resources

What is the main characteristic of resources that leads to central problems?

• Abundance and limited wants

• Abundance and unlimited wants

• Scarcity and unlimited wants

• Scarcity and limited wants

What is the purpose of the Production Possibility Curve?

• To show the maximum production capacity of an economy

• To show the optimal distribution of resources

• To show the different combinations of goods that can be produced

• To show the demand-supply equilibrium

How does a Mixed Economy solve the central problems?

• Through government intervention only

• Through a combination of government intervention and market forces

• Through international trade agreements

• Through market forces only