As Economic - Chapter 1

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As Economic - Chapter 1

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Katherine Lim

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As Economic - Chapter 1


As Economic - Chapter 1Versión en línea As Economic - Chapter 1 por Katherine Lim 1 An economy has limited resources but unlimited wants. Which economic problem does this create? a Inflation b Scarcity c Unemployment d Economic growth 2 A farmer can use a fixed area of land to produce either wheat or vegetables. The farmer decides to produce more wheat and gives up the opportunity to produce 500 tonnes of vegetables. What is the opportunity cost of producing the additional wheat? a The money received from selling the wheat b The total cost of producing the wheat c The 500 tonnes of vegetables forgone d The amount of land used to produce wheat 3 A country moves from point P to point Q on its production possibility curve (PPC). Manufacturing output increases by 100 units while agricultural output decreases by 60 units. What is the opportunity cost of one additional unit of manufactured goods? a 0.6 units of agriculture b 1.67 units of agriculture c 60 units of agriculture d 100 units of agriculture 4 A PPC is bowed outwards from the origin. What is the most likely reason for this shape? a All resources are equally productive in all uses b Resources are unlimited in the economy c Resources are not equally suited to different uses d The economy has no opportunity cost 5 An economy moves along its PPC and increasingly more resources are transferred from agriculture to manufacturing. Why is the opportunity cost of manufacturing likely to increase? a More productive resources are increasingly transferred from manufacturing b Resources become unlimited as production increases c Resources transferred later are less suited to agriculture d Resources transferred later are more suited to agriculture 6 Which combination correctly identifies the four factors of production? a Land, money, capital and enterprise b Land, labour, capital and enterprise c Labour, money, machinery and enterprise d Land, labour, money and capital 7 Workers in a factory are each responsible for producing only one part of a product. Which economic concept is illustrated? a Factor mobility b Opportunity cost c Division of labour d Paternalism 8 Which good is most likely to be classified as a public good? a national defence b national car c shoes d restaurant meal 9 A person benefits from street lighting without making any payment towards its provision. Which concept best describes this person? a Producer b Free rider c Entrepreneur d Consumer sovereign 10 Which function of money allows the value of different goods and services to be compared? a Medium of exchange b Store of wealth c Standard of deferred payment d Unit of account

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As Economic - Chapter 1

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As Economic - Chapter 1Versión en línea

por Katherine Lim

An economy has limited resources but unlimited wants. Which economic problem does this create?

A farmer can use a fixed area of land to produce either wheat or vegetables. The farmer decides to produce more wheat and gives up the opportunity to produce 500 tonnes of vegetables. What is the opportunity cost of producing the additional wheat?

A country moves from point P to point Q on its production possibility curve (PPC). Manufacturing output increases by 100 units while agricultural output decreases by 60 units. What is the opportunity cost of one additional unit of manufactured goods?

A PPC is bowed outwards from the origin. What is the most likely reason for this shape?

An economy moves along its PPC and increasingly more resources are transferred from agriculture to manufacturing. Why is the opportunity cost of manufacturing likely to increase?

Which combination correctly identifies the four factors of production?

Workers in a factory are each responsible for producing only one part of a product. Which economic concept is illustrated?

Which good is most likely to be classified as a public good?

A person benefits from street lighting without making any payment towards its provision. Which concept best describes this person?

Which function of money allows the value of different goods and services to be compared?