The opportunity cost of producing 80m capital goods is:

the number of consumer goods forgone to produce 80m capital goods

the total output of both goods combined

the price of capital goods in the market

the amount of labor used in production

Draw a production possibility curve showing the effect of an increase in the quantity of resources.

A production possibility curve that shifts outward, indicating an increase in the quantity of resources.

A production possibility curve that shifts inward, indicating a decrease in the quantity of resources.

A production possibility curve that remains unchanged, indicating no change in resources.

A production possibility curve that becomes a straight line, indicating constant opportunity cost.

What would cause an increase in the problem of scarcity?

A rise in the mobility of resources

What is meant by investment in human capital?

Spending money and time on educating and training workers

Encouraging immigration of people of working age

Paying bonuses to workers to encourage them to increase their output

Upgrading the machines labour works with

Which item is a factor of production?

The satisfaction a farmer gains from his work

The wages a farmer pays his workers

Which form of air is an economic good?

Air from an air conditioning system

What might be the opportunity cost of using a bus to transport children to school?

Transporting a group of retired people on a day out

Increasing the earnings of the bus company

Paying for the cost of petrol used

What is meant by 'labour' in economics?

Human mental and physical effort used in producing goods and services

Hard physical work used to produce manufactured goods

Natural resources used in the productive process

Risk taking and organising the factors of production

What does a point outside a production possibility curve represent?

A. A currently unattainable position

C. The maximum use of resources

Identify one way in which each of the following pairs is similar: Builders and teachers.

Both help in building or shaping something.

Identify one way in which the entrepreneur and labour are similar.

Both contribute to the production process.

Both provide only physical effort.

Both receive only profits as income.

Forests and streams are similar because they both:

Are natural habitats for many living organisms

One way in which production possibility curves and production possibility frontiers are similar is that they both:

Show the maximum possible output combinations of two goods or services.

Represent the total revenue of a firm.

Indicate the level of unemployment in an economy.

Show the distribution of income among individuals.

One way in which capital goods and consumer goods are different is:

Capital goods are used to produce other goods, while consumer goods are used by consumers.

Capital goods are always more expensive than consumer goods.

Consumer goods are only used in factories, while capital goods are used at home.

Capital goods are perishable, while consumer goods are durable.

One way in which economic goods and free goods are different is:

Economic goods have a price, while free goods do not.

Economic goods are unlimited, while free goods are limited.

Economic goods are not useful, while free goods are always useful.

Economic goods are always natural, while free goods are always man-made.

Identify one way in which each of the following pairs is different: 3. Capital and land.

Capital is man-made, while land is a natural resource.

Capital is a natural resource, while land is man-made.

Both capital and land are man-made resources.

Both capital and land are natural resources.

One way in which geographical immobility and occupational immobility are different is:

Geographical immobility refers to barriers to moving location, while occupational immobility refers to barriers to changing jobs or professions.

Geographical immobility is about changing jobs, while occupational immobility is about moving to a new city.

Geographical immobility only affects skilled workers, while occupational immobility only affects unskilled workers.

Geographical immobility is caused by education, while occupational immobility is caused by transportation.

One way in which opportunity cost and financial cost are different is:

Opportunity cost includes the value of the next best alternative foregone, while financial cost refers only to actual monetary expenditure.

Opportunity cost and financial cost both refer only to monetary expenses.

Financial cost includes non-monetary factors, while opportunity cost does not.

Opportunity cost and financial cost are always the same in every situation.

Identify three factors of production used in making cars from the options below.

Electricity, water, and plastic

Marketing, sales, and advertising

The relevance of opportunity cost for a worker deciding whether to accept a new job is that:

It involves comparing the benefits of the new job with what is given up by leaving the current job.

It only considers the salary offered by the new job.

It ignores any non-monetary factors such as job satisfaction.

It is not important in making job decisions.

The relevance of opportunity cost for a family deciding where to go for holiday is that:

they must consider what they are giving up by choosing one destination over another.

they can visit all destinations at the same time.

opportunity cost does not apply to holiday decisions.

the cost is only about the money spent, not the alternatives forgone.

The relevance of opportunity cost for an entrepreneur selecting which new product to launch is that:

It helps compare the potential benefits of different products to make the best choice.

It ensures that only the cheapest product is selected.

It guarantees that the most popular product will succeed.

It eliminates all risks associated with launching a new product.

The relevance of opportunity cost in the production of economic goods is that:

resources used for one good cannot be used for another, so choices must be made

all resources are unlimited, so opportunity cost does not apply

opportunity cost only applies to non-economic goods

opportunity cost is irrelevant in production decisions

An economic resource is:

a factor used to produce goods and services

a finished product ready for sale

money kept in a savings account

The mobility of economic resources refers to:

The ability of resources to move from one use to another.

The total amount of resources in an economy.

The fixed nature of all resources.

The value of resources in monetary terms.

2c. An increase in the quality of economic resources can be caused by which of the following?

Improved education and training, technological advancements, and better healthcare

Decreased investment in infrastructure, reduced research, and lower education standards

Increased unemployment, reduced capital, and lower productivity

Higher taxes, stricter regulations, and reduced competition

A possible opportunity cost of Pakistan devoting more of its resources to producing cotton garments is:

reduced production of other goods such as wheat or electronics

increased export earnings from cotton garments

lower demand for cotton in the international market

improved quality of cotton garments

Evidence of scarcity in the passage about a German travel company is shown by:

limited resources available for travel services

an abundance of travel options for everyone

unlimited demand for travel packages

Identify three factors of production involved in providing holidays in the Maldives, using examples.

Land, labour, and capital (e.g., beaches, hotel staff, resorts)

Weather, tourists, and food (e.g., sunny days, visitors, local cuisine)

Culture, government, and transport (e.g., traditions, regulations, boats)

Technology, advertising, and entertainment (e.g., booking systems, marketing, shows)

A German travel company considers its future: c. (i) An economic good is different from a free good because:

An economic good is scarce and has an opportunity cost, while a free good is abundant and has no opportunity cost.

An economic good is always free, while a free good is always expensive.

A free good is produced by companies, while an economic good is found in nature.

An economic good cannot be bought or sold, while a free good is always sold in markets.

IGCSE Econ WB Unit 1&2

Authored by Chloe Zhang

Social Studies

9th Grade

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MATCH QUESTION

30 sec • 1 pt

This exercise is based on some of the key terms used in economics. Match the following terms with their appropriate definitions. For instance, if you think an 'inability of workers to change jobs and location' defines 'scarcity', match 1 with c. Each term has an appropriate definition. If you find that you are left with a term and a definition which does not appear to match, you should review your other matches.

Natural resources

Land

Products people desire to have

The economic problem

Human made resources

Wants

Inability to produce everything that people want

Capital

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

One way to become familiar with key economic words and terms is to use them. This exercise is designed to test your understanding of some economic words and terms in context. So complete the following sentences by filling in the missing word or words. 1. It is not possible to eliminate as grow faster than economic resources.

wants, wants

needs, wants

resources, needs

goods, resources

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The economic problem means that people have to make ________________ .

choices

mistakes

predictions

excuses

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Most land is mobile but geographically .

occupationally, immobile

geographically, occupationally

easily, permanently

temporarily, spatially

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If gross investment exceeds depreciation there is __________ investment.

net

zero

negative

fixed

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

is the payment labour receives whilst is the payment entrepreneurs receive.

Wages, profit

Profit, wages

Rent, interest

Interest, rent

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A country's labour force can be increased by the retirement age and the school leaving age.

raising, lowering

lowering, raising

lowering, lowering

raising, raising

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IGCSE Econ WB Unit 1&2

The economic problem means that people have to make ________________ .

Most land is mobile but geographically .

If gross investment exceeds depreciation there is __________ investment.

is the payment labour receives whilst is the payment entrepreneurs receive.

A country's labour force can be increased by the retirement age and the school leaving age.

is output whereas is output per worker hour.

A key role of entrepreneurs is to bear __________ risks.

Another name for a production possibility curve is an __________ cost curve.

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Social Studies

IGCSE Econ WB Unit 1&2

The economic problem means that people have to make ________________ .

Most land is ________________ mobile but geographically ________________ .

If gross investment exceeds depreciation there is __________ investment.

__________ is the payment labour receives whilst __________ is the payment entrepreneurs receive.

A country's labour force can be increased by __________ the retirement age and __________ the school leaving age.

__________ is output whereas __________ is output per worker hour.

A key role of entrepreneurs is to bear __________ risks.

Another name for a production possibility curve is an __________ cost curve.

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Social Studies

Most land is mobile but geographically .

is the payment labour receives whilst is the payment entrepreneurs receive.

A country's labour force can be increased by the retirement age and the school leaving age.

is output whereas is output per worker hour.