Economics and Difficulty
Chapter 01 - Economic conceptsChapter 01 - Economic concepts
Student: ___________________________________________________________________________
1.|Economics is a study of: A. |scarcity.|B. |production.|C. |labour resources.|D. |money.|| 2.|Opportunity cost means: A. |wasted opportunities.|B. |costs incurred in purchasing goods and services.|C. |alternatives forgone.|D. |the costs of production.|| 3.|The production possibilities frontier illustrates: A. |current production levels.|B. |a society's level of consumption.|C. |a range of alternative levels of output.|D. |decisions on how to produce.|| 4.|A point inside the production possibilities curve could represent: A. |an impossible output according to static analysis.|B. |unemployment.|C. |new technology.|D. |an efficient use of resources.|| 5.|Capital is: A. |money invested in shares.|B. |a naturally occurring resource.|C. |a good used to produce other goods.|D. |totally reliant on labour for production.|| 6.|Every economy is faced with: A. |unlimited wants and unlimited resources.|B. |increasing labour resources.|C. |unlimited wants, limited resources.|D. |limited wants and resources.|| 7.|An office building represents: A. |an example of a land resource.|B. |capital.|C. |opportunity cost.|D. |scarcity.|| 8.|An economy can produce outside its production possibility frontier when: A. |new technology is developed.|B. |people limit their choices.|C. |distribution systems are improved.|D. |never|| 9.|In deciding how to produce, an economy evaluates: A. |cost of technology.|B. |availability of labour.|C. |levels of skill.|D. |All of the given answers are correct.|| 10.|Consumer wants are: A. |limited.|B. |usually misguided.|C. |often recurrent.|D. |do not involve choice.|| 11.|Economic wants are limited at any point in time. True False| 12.|Resources are also known as factors of production. True False| 13.|All economic systems try to answer the
Student: ___________________________________________________________________________
1.|Economics is a study of: A. |scarcity.|B. |production.|C. |labour resources.|D. |money.|| 2.|Opportunity cost means: A. |wasted opportunities.|B. |costs incurred in purchasing goods and services.|C. |alternatives forgone.|D. |the costs of production.|| 3.|The production possibilities frontier illustrates: A. |current production levels.|B. |a society's level of consumption.|C. |a range of alternative levels of output.|D. |decisions on how to produce.|| 4.|A point inside the production possibilities curve could represent: A. |an impossible output according to static analysis.|B. |unemployment.|C. |new technology.|D. |an efficient use of resources.|| 5.|Capital is: A. |money invested in shares.|B. |a naturally occurring resource.|C. |a good used to produce other goods.|D. |totally reliant on labour for production.|| 6.|Every economy is faced with: A. |unlimited wants and unlimited resources.|B. |increasing labour resources.|C. |unlimited wants, limited resources.|D. |limited wants and resources.|| 7.|An office building represents: A. |an example of a land resource.|B. |capital.|C. |opportunity cost.|D. |scarcity.|| 8.|An economy can produce outside its production possibility frontier when: A. |new technology is developed.|B. |people limit their choices.|C. |distribution systems are improved.|D. |never|| 9.|In deciding how to produce, an economy evaluates: A. |cost of technology.|B. |availability of labour.|C. |levels of skill.|D. |All of the given answers are correct.|| 10.|Consumer wants are: A. |limited.|B. |usually misguided.|C. |often recurrent.|D. |do not involve choice.|| 11.|Economic wants are limited at any point in time. True False| 12.|Resources are also known as factors of production. True False| 13.|All economic systems try to answer the