Economics Worksheet 0455/12/O/N/18

Which factor of production is not represented in the list shown? bananas a factory goats a risk taking investor

• capital

• enterprise

• labour

• land

What do economies aim to achieve in tackling the economic problem of scarcity?

• equal balance between public and private sectors

• equal reward for equal effort

• increased competition in the use of resources

• optimum allocation of finite resources

Which statement is correct?

• A. A movement from X to Y shows a decrease in efficiency in the economy.

• B. A movement from X to Z shows a discovery of new resources in the economy.

• C. A movement from Y to Z shows resources are being diverted from capital goods to consumer goods.

• D. A movement from Z to Y shows an increase in efficiency in the economy.

China, the world’s second largest economy, is becoming more like a market economy.

Which policy would contribute directly to such a change?

• abolishing state control completely

• encouraging consumers to spend more and save less

• reducing exports and encouraging more imports

• transferring wealth from the state sector to the private sector

The diagram shows the market for a firm making clothing with an initial equilibrium X. ​ ​
What will be the new equilibrium if there is a successful advertising campaign by a rival firm and an increase in workers’ wages?​

• A

• B

• C

• D

What best describes the social cost of coal production?

• A. all the benefits of coal production minus all the costs of coal production

• B. the cost of the environmental damage caused by coal production

• C. the cost to the government of subsidising the coal industry

• D. the private costs of coal production plus the external costs of coal production

• 0.25

• 0.5

• 1.0

• 2.0

A central bank acts as a lender of last resort especially in times of financial crisis.

What is the purpose of this function?

• A to cover credit card debts of consumers

• B to provide liquidity to the banking system

• C to remove failing banks from the financial system

• D to safeguard the profits of the banking system

What will cause the level of savings in an economy to rise?

• A a fall in investment

• B a fall in real wages

• C a rise in income taxes

• D a rise in interest rates

10 What could affect the size of the labour force in an economy?

• A the existence of a trade union

• B the government’s immigration policy

• C the quality of university graduates

• D the ratio of male to female employees