X_ECO_2025 -2

What is the fundamental economic problem?

• Unemployment

• Inflation

• Scarcity and choice

• Monopoly

Which of the following is NOT a factor of production?

• Land

• Labour

• Capital

• Inflation

Which factor of production refers to natural resources like minerals, forests, and land?

• Labour

• Capital

• Land

• Entrepreneur

Who is responsible for organizing production by combining factors of production?

• Consumer

• Entrepreneur

• Government

• Worker

The term "entrepreneur" originates from which language?

• Latin

• English

• French

• German

What is the definition of demand in economics?

• A desire to purchase goods

• The ability to buy goods

• A desire backed by the willingness and ability to pay

• A list of goods available in the market

Which of the following factors directly affects demand?

• Government budget

• Price of goods and services

• Exchange rate

• Weather conditions

What type of relationship exists between price and demand according to the Law of Demand?

• Direct

• Inverse

• Constant

• Positive

What happens to the demand for a good when the income of a consumer increases (for normal goods)?

• It decreases

• It remains the same

• It increases

• It fluctuates randomly

What happens to the demand for an inferior good when consumer income rises?

• It decreases

• It increases

• It remains constant

• It fluctuates randomly