Economics

Question 1

1Economics is best described as the study of

Easy

A. government only B. how scarce resources are allocated to satisfy unlimited wants C. banking and finance only D. how to make money

Question 2

2A country can produce 100 tonnes of rice or 50 tonnes of maize. The opportunity cost of 1 tonne of maize is

Hard

A. 1 tonne of rice B. 50 tonnes of rice C. 2 tonnes of rice D. 0.5 tonne of rice

Question 3

3The father of modern economics, author of The Wealth of Nations, is

Easy

A. Adam Smith B. Alfred Marshall C. Karl Marx D. J. M. Keynes

Question 4

4Microeconomics studies

Easy

A. the whole economy B. only foreign trade C. individual units such as households and firms D. only government

Question 5

5A point inside the production possibility curve indicates

Easy

A. economic growth B. an unattainable output C. full employment D. unemployment or inefficient use of resources

Question 6

6Economics is often defined as the study of how society

Easy

A. governs itself B. prints money C. worships D. allocates scarce resources to satisfy unlimited wants

Question 7

7The study of the economy as a whole is

Easy

A. accounting B. macroeconomics C. econometrics D. microeconomics

Question 8

8Goods that are free in supply and have no price, such as air, are

Easy

A. free goods B. capital goods C. inferior goods D. economic goods

Question 9

9The factor of production that bears risk and organises the others is the

Easy

A. land B. capital C. labour D. entrepreneur

Question 10

10An outward shift of the PPC represents

Easy

A. a recession B. economic growth C. inflation D. unemployment