YEAR 10 WEEK 2 ECONOMICS CLASSWORK

Which of the following product are scarce?

• vacancies for university degree courses

• foreign holidays

• healthcare

• All of the above

Which of the following is NOT an economic good?

• education

• air

• newspapers

• public libraries

Why does scarcity exist?

• Each year workers tend to produce less than previously

• Machines wear out with time

• There are not sufficient resources to produce all the products people want

• There is a limit to people’s wants

Why will scarcity continue to be a problem in the future?

• Prices will rise

• Wants will continue to increase

• The quantity of resources will decline

• World population will fall

Which of the following is a free good?

• Wind coming in from the sea

• Inoculation provided without charge by the state

• Products given away by a supermarket to attract customers

• Recycled paper

What is meant by ‘opportunity cost’?

• The cost of the item selected

• The cost of exploring business opportunities

• The best alternative forgone

• The labour used in producing the product

A person decides to go to the university for three years, to study economics. If he had not gone, he could have taken up a job which would have paid him $15 000 a year. After he graduates he expects to find a job paying him $40 000 a year. What is the opportunity cost of going to the university for him?

• $15 000

• $40 000

• $45 000

• $120 000

What are the characteristics of a free good?

• Has an opportunity cost and takes resources to produce it

• Has an opportunity cost and takes no resources to produce it

• Has no opportunity cost and takes no resources to produce it

• Has no opportunity cost and takes resources to produce it

t The 150.00 Naira which Olu would have used to purchase a textbook was used to buy a T-shirt . This implies that...

• Olu's real cost is 150.00 Naira

• Olu's opportunity cost is the T-shirt he bought

• Olu's opportunity cost is the textbook

• Olu's money cost is also the real cost

A list of consumer's wants arranged in order of priorities is known as.......

• a budget

• A scale of preference

• choice  

• an opportunity cost