Economics

Question 1

1Choice in economics arises because of

Easy

A. abundance B. scarcity C. taxation D. inflation

Question 2

2The opportunity cost of attending SHS for a 16-year-old might be

Hard

A. school fees only B. nothing C. the wages forgone from working D. the cost of books only

Question 3

3Scale of preference is

Easy

A. a tax table B. a weighing scale C. a price list D. a list of wants arranged in order of importance

Question 4

4A student chooses to buy a textbook instead of a pair of shoes. The shoes are the

Easy

A. real income B. demand C. opportunity cost D. utility

Question 5

5Economics is described as a social science because it

Hard

A. is only about money B. studies human behaviour in using scarce resources C. uses laboratory experiments only D. studies rocks

Question 6

6A point inside a production possibility curve shows

Easy

A. full employment B. economic growth C. unemployed or inefficiently used resources D. an impossible output

Question 7

7The basic economic problem arises because

Easy

A. human wants are unlimited while resources are scarce B. goods are free C. money is unlimited D. everybody is rich

Question 8

8The three basic questions every economy must answer are what to produce, how to produce and

Easy

A. when to stop B. for whom to produce C. where to sell D. who to tax

Question 9

9Which is a free good?

Easy

A. air B. a textbook C. a car D. bread

Question 10

10The questions "what to produce, how to produce and for whom to produce" are the

Easy

A. basic questions every economy must answer B. types of taxes C. functions of money D. laws of demand