Topic 1 Central Economic Problem_Scarcity, Resources, Choices, Opp cost

What is the primary focus of economics?

• The study of historical events

• The study of how to allocate limited resources to satisfy unlimited wants

• The study of physical sciences

• The study of languages

Which of the following is NOT a factor of production?

• Land

• Capital

• Entrepreneurship

• Technology

What does microeconomics study?

• The global economy

• The behavior of individual decision-making units

• The aggregate output of an economy

• The national unemployment rate

Which statement is an example of normative economics?

• Singapore spends more money on its military than any other country

• An increase in household income will lead to an increase in the demand for luxury goods

• The government should provide education for free

• The price of vegetables has risen

What is the opportunity cost of choosing to spend time studying for a test?

• The grade received on the test

• The enjoyment from catching up with friends

• The cost of the test materials

• The time spent in the library

What is one of the concern of macroeconomics?

• Sustainable and inclusive Economic growth

• The pricing of individual goods

• Individual market behavior

• The decision-making process of firms

Which of the following is a renewable natural resource?

• Mineral ores

• Fossil fuels

• Wind

• Gold

What is the opportunity cost of a firm using its own building for operations?

• The salaries of the employees working there

• The depreciation of the building

• The rent that could have been earned by leasing it out

• The cost of building maintenance

Which of the following best describes positive economics?

• It cannot be verified or tested

• It is subjective and value-based

• It expresses value judgments about economic fairness

• It describes and explains economic phenomena based on facts

What is the central problem of economics?

• Inflation

• Scarcity

• Unemployment

• Trade deficits