Which terms summarise the nature of the economic problem?

A finite resources and limited wants
B finite resources and unlimited want
C infinite resources and limited want
D infinite resources and unlimited want[J10/P1/Q2]

Answer is B


The government of a country with a rapidly increasing population decides to switch resources from investment to increased subsidies to farmers What is the opportunity cost of this decision?

A the profit earned by farmers
B the rent of the land on which food is grown
C the reduction in investment
D the wages of the farm workers(J10/P1/Q4]

Answer is C

Which economic change would increase the problem of scarcity?

A. a decrease in fish stocks
B. a discovery of a new oil field
C an increase in labour productivity
D a reduction in waste(J10/P11Q5)

Answer is A

What makes choice an important element in the basic economic problem?

A Increased demand leads to higher market prices
B Limited resources have many al ternative uses
C Reaching a market equilibrium may take a long time
D Scarce economic resources are distributed equally [N10/P1/Q3) ,

Answer is B

A government is faced with the choice of spending on either education or healthcare Of what is this an example?

A. conservation of resources
B monetary policy
C opportunity cost
D substitution of factors [N10/P1/Q5)

Answer is C


A firm decides to stop manufacturing ovens and to produce washing machines instead What is the opportunity cost to the firm?

A the additional washing machines produced
B the cost of producing ovens
C the cost of producing washing machines
D the loss of the production of ovens[J11/P1/Q2]
Answer is D

What is meant by the economic problem?

A how to achieve efficiency with the existence of fixed resources and limited wants
B how to allocate resources between public and private sectors
C how to balance unlimited wantsagainst finite resources
D how to decide which methods to use to exploit all resources[J11/P1/Q5]

Answer is C

Every business organisation faces the st problem of satisfying wants why wants are not fully satisfied?

A An economy can only produce a limited amount of goods and services nd low
B Governments cannot print enough th money to pay for goods and services
C There is an over-production of goods and services by business organisations
D Workers are too skilled for the requirements of the jobs available (N11/P1/Q3]
Answer is A

Economics is primarily concerned with

A allocating scarce resources for unlimited wants 00
B controlling unemployment and inflation Blow 100 ginate
C determining the level of govern mentexpenditure anne
D studying how new wants and economic resources can be produced[J12/P1/QU)

Answer is A