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- 1. Multiple Choice
Which one of the following is not the question referred to resource allocation?
What to produce?
How to produce?
Who to produce?
Who to produce for?
- 2. Open Ended
An economy is an area where people and firms ____________________
- 3. Multiple Choice
An economy operates entirely as a market system.
Which type of service would not be provided in such an economy?
commercial banking services
free government health services
private educational services
profitable retail services
- 4. Multiple Choice
What is the government most likely to produce in a mixed economy?
all the services and none of the goods
amounts of goods and services equal to those of the private sector
no goods and services
some of the goods and services
- 5. Multiple Choice
Which pair of economic institutions can be found in a market economy?
local government and charities
private company and commercial banks
nationalised industries and partnerships
stock exchange and public corporations
- 6. Multiple Choice
In a mixed economy, the output is produced by
private enterprise and individuals.
the market alone.
the state alone.
the state and private enterprise.
- 7. Multiple Choice
What can be found in a mixed economy but not in a market economy?
a national economic development plan
an unequal distribution of income and wealth
the operation of the price mechanism
the private ownership of factors of production
- 8. Multiple Choice
The production possibility curve (PPC) shows the hours per day a student has for either entertainment or revision.
The student revises for 3 hours a day. As exams approach, the student decides to revise for 9 hours a day.
What is the opportunity cost of this decision?
3hours of revision
6 hours of entertainment
6 hours of revision
9 hours of entertainment
- 9. Multiple Choice
The production possibility curve (PPC) shows the hours per day that a person has for either work or leisure.
This person works 6 hours a day but then decides to work 9 hours a day.
Which movement shows this change?
T to R
T to U
U to V
U to T
- 10. Multiple Choice
A person makes sandwiches at home for five hours each day. She makes 20 sandwiches per hour, and she sells each sandwich for $2 each.
What is the opportunity cost if she takes a holiday on a working day?
$2
$40
20 sandwiches
100 sandwiches
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