Year 11 Economics Quiz

What is economics primarily concerned with?

• The study of natural resources

• The allocation of scarce resources

• The study of human culture

• The study of political systems

Which of the following is a factor of production?

• Money

• Government policies

• Labor

• Trade agreements

Opportunity cost is defined as:

• The value of all alternatives forgone

• The monetary cost of a good

• The time taken to produce a good

• The value of the next best alternative forgone

What does the term "scarcity" in economics refer to?

• Unlimited resources

• Limited resources and unlimited wants

• Limited wants and limited resources

• Unlimited wants and unlimited resources

Which of the following is NOT an economic resource?

• Capital

• Land

• Labor

• Government

What is the basic economic problem faced by all societies?

• Overproduction

• Unemployment

• Scarcity of resources

• Inflation

In a market economy, the problem of 'what to produce' is solved by:

• Government intervention

• Forces of demand and supply

• Company policies

• International trade agreements

What does the law of demand state?

• As the price of a good increases, quantity demanded increases

• As the price of a good increases, quantity demanded decreases

• As the price of a good decreases, quantity supplied decreases

• There is no relationship between price and demand

The demand curve usually slopes:

• Upward from left to right

• Downward from left to right

• Horizontally

• Vertically

Which of the following is likely to cause a rightward shift in the demand curve?

• A decrease in consumer income

• An increase in the price of a substitute good

• A rise in the price of the good

• A fall in the price of a complementary good