Quiz 1: ECO1104

Which of the following are NOT consider as economic resources?

• Capital resources such as machinery and equipment.

• Natural resources such as river water.

• Financial resources such as saving money in banks.

• Human resources like carpenters.

The opportunity cost for free goods is zero because

• the supply is unlimited.

• the usefulness of the goods is limited.

• the goods are provided by the state for free.

• the goods do not give satisfaction to the consumer.

Economic goods are goods that

• the supply is limited.

• its opportunity costs are increasing.

• subject to the principle of exception.

• Profitable to manufacturers.

Public goods are

• goods that involve high cost.

• goods that have a high opportunity cost.

• Goods provided by the state for free.

• Goods whose use is not subject to the principle of exception.

The basic economics problems are caused by

• economic resources are fixed.

• the level of technology is fixed.

• not all human will can be fulfilled.

• economic resources cannot be used efficiently.

A good has a opportunity cost when

• the supply is unlimited.

• relatively is not enough.

• provide satisfaction to consumers.

• provided by the state.

The production possibilities curve is drawn based on the following assumptions EXCEPT

• economic resources are fixed.

• the level of technology is fixed.

• consumer tastes have not changed.

• all economic resources are used efficiently.

Which of the following is assumed to be unchanged in the publication of the production possibility curve?

• Capital stocks.

• Inflation rate.

• Unemployment rate.

• The supply of money in the economy.

The choice of society about the type of goods to be produced will determine

• income distribution pattern.

• patterns of allocation of economic resources.

• methods of production of such goods.

• the number of goods produced.

Which basic economic problem is related to for whom are the goods produced?

• Selection of production techniques.

• Consumer needs and the welfare of society.

• The market equilibrium of the goods.

• Distribution of income and consumer affordability.