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Social Studies
9th -
11thgrade
MCQ Basic economic problem
30 questions
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- 1. Multiple Choice
A free good would be one that is superabundant so that there is no sacrifice incurred in using it
True
False
- 2. Multiple Choice
Labour is responsible for bringing together land, capital and enterprise
True
False
- 3. Multiple ChoiceThe basic economic problem can never be eliminated.truefalse
- 4. Multiple Choice
$2bn is invested in developing a country’s natural resources and infrastructure.
Which two factors of production does this refer to directly?
capital and labour
capital and land
enterprise and land
labour and land
- 5. Multiple Choice
Which of these is not a decision which is made to solve the basic economic problem?
What to produce
How to produce
Why to produce
For whom to produce
- 6. Multiple Choice
Define opportunity cost
the value forgone from the all other alternatives
the value forgone from the next two best alternatives
the value forgone from the next best alternative
the value gained from choosing
- 7. Multiple Choice
Which of the below is not scarce resource?
Oil
Sea water
Natural gas
Gold
- 8. Multiple Choice
What is most likely to reduce the supply of factors of production in an economy?
increasing the age of retirement
introducing new methods of irrigation
lowering the cost of borrowing from banks
raising the rate of tax on profits
- 9. Multiple Choice
A power station was built to provide electricity to rural villages in Namibia. What was its opportunity cost?
the cost of producing the electricity
the school which could have been built instead
the time given up the architect to design the power station
the benefits enjoyed from the power station
- 10. Multiple ChoiceWhat factor of production's function is to make decisions and take risks?CapitalEnterpriseLandLabour
- 11. Multiple ChoiceWhat is meant by 'labour' in economics?Hard physical work used to produce manufactured goodsHuman mental and physical effort used for producing goods and servicesNatural resources used in the productive processRisk taking and organising the factors of production
- 12. Multiple ChoiceWhich factor of production is the least mobile?CapitalEnterpriseLabourLand
- 13. Multiple ChoiceWhat does a point outside the PPC represent?A currently unattainable positionAn inefficient positionThe maximum use of resourcesUnused resources
- 14. Multiple Choice
What happens every time we make a decision?
We win!
We incur an opportunity cost
We incur an opportunity loss
We incur an opportunity cost of multiple other options
- 15. Multiple ChoiceWhich are not a factors of productionlandrentcapitalinterest
- 16. Multiple ChoiceThe difference between a good and a service is that:Goods are available in unlimited quantaties and services are notGoods are tangible and services are notServices are available in unlimited quantaties and goods are notgoods help satisfy unlimited wants and services do not
- 17. Multiple Choice
Which of the following is a human-made resource?
A production worker
a forest
A field of wheat
A factory
- 18. Multiple Choice
Which of the following is an example of a capital good?
A textile factory
A pair of fashionable trousers
A skilled machine operator in a textile plant
Raw cotton
- 19. Multiple Choice
The following are four ways factor of production are used. What is likely to require the greatest use of the factor enterprise?
A carpenter making wooden articles in his leisure time for sale at a monthly market
A corn farmer negotiating with other farmers to hire expensive machinery
A food shop owner sometimes selling flowers in the shop
A householder harvesting vegetables grown at home
- 20. Multiple Choice
Refer to the production possibilities diagram for the following Question.
Production of which of the points in the diagram is currently unattainable given the economy's resources?
Point A
Point B
Point C
Point D
- 21. Multiple Choice
A
B
C
D
- 22. Multiple Choice
The following are four ways factors of production are used.
What is likely to require the greatest use of the factor enterprise?
a carpenter making wooden articles in his leisure time for sale at a monthly market
a food shop owner sometimes selling flowers in the shop
a householder harvesting vegetables grown at home
a corn farmer negotiating with other farmers to hire expensive machinery
- 23. Multiple Choice
It is more efficient to produce more of clothes than food
it is only possible to increase the output of clothes by reducing the output of food
the best situation is to produce equal units of clothes and food
the cost of producing a unit of clothes is always higher than that of food
- 24. Multiple Choice
Hala makes cakes she bakes in her kitchen at home. She sells them at a local market. To produce more cakes she decides to invest in a larger oven and to employ someone to help.
Which factors of production have changed?
labour
capital
labour and capital
enterprise and capital
- 25. Multiple Choice
Which of the following illustrates the sustainable use of resources?
Discovering new sources of oil for fuel
Recycling soft drink bottles
Burying rubbish in landfill
Replanting trees following use for fuelwood
- 26. Multiple Choice
Which of the following is not a decision made by producers?
Which goods or services to produce
Where to locate a factory
How to produce the goods or services
How much of the goods or service will be bought
- 27. Multiple Choice
Why must a government consider the opportunity cost of spending decisions?
To get the best value for money
Because the money comes from taxation
Because a choice must be made between alternative uses
To meet all the people's needs
- 28. Multiple Choice
Increasing numbers of trees in tropical rainforests are being cut down by private firms to supply hardwood timber.What is the opportunity cost of this activity?
The natural environment that is destroyed
The cost of the cutting and logging machinery
The wages paid to workers to cut the timber
The tax revenue from the sale of the timber
- 29. Multiple Choice
A boat owner employs a crew to catch fish to sell on the market. Which factors of production are involved in this activity?
Labour, capital and enterprise only
Land, labour, capital and enterprise
Land and labour only
Labour and capital only
- 30. Multiple Choice
In the diagram below what is the opportunity cost of increasing the output of cars from 550 per week to 640 per week?
0 trucks
40 trucks
320 trucks
360 trucks
- Answer choicesTagsAnswer choicesTags