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- 1. Multiple Choice
1 What is the basic economic problem faced by all societies?
Achieving happiness
An inefficient economic system
Rewarding factors of production
Scarcity of Resources
- 2. Multiple Choice
Which product is most likely to be classified as a free good?
Birthday presents
Public transportation
Seawater
State (government-funded) education
- 3. Multiple Choice
Which option is not an example of capital as a resource?
Computers
Factory
Machinery
Natural resources
- 4. Multiple Choice
Which event is most likely to cause an increase in the average wage of labour?
A decrease in the national minimum wage
An increase in the national minimum wage
Government tax policies
Net migration of labour into the country
- 5. Multiple Choice
Juke bought a new Xbox One games console for $295 but has never used it.The second-hand value of his Xbox One is $195. What is the opportunity
cost of Juke owning the games console?
0$
100$
195$
295$
- 6. Multiple Choice
What is the opportunity cost to the economy if the government decidesto build a new motorway (highway)?
The cost of relocating and compensating residents in order to build the motorway
The money spent on building the motorway
The other projects that could have been undertaken had the motorway not been built
The overall cost to taxpayers of financing the motorway project
- 7. Multiple Choice
What is meant by ‘opportunity cost’?
The best alternative forgone
The cost of the item selected
The cost of exploring business opportunities
The labour used in producing the product
- 8. Multiple Choice
A person decides to go to the university for three years, to study economics. If he had not gone, he could have taken up a job which would have paid him $15 000 a year. After he graduates he expects to find a job paying him $40 000 a year. What is the opportunity cost of going to the university for him?
15 000 $
40 000 $
45 000 $
120 000 $
- 9. Multiple Choice
What are the characteristics of a free good?
Has an opportunity cost. Takes resources to produce it
Has an opportunity cost. Takes no resources to produce it
Has no opportunity cost. Takes no resources to produce it
Has no opportunity cost. Takes resources to produce it
- 10. Multiple Choice
On his birthday, Kamran receives $200 from his aunt, $50 of which he decides to save. Heis taken out by his father for lunch. His father pays the bill. Kamran spends the afternoon playing football. Which of these activities involves an opportunity cost?
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