09 Economics 2

1.

1 point

Which of the following definitions best describes the concept of opportunity cost:

using your pocket money to buy a video game instead of a DVD

getting a job instead of going to school

all of the above

the cost of using resources to produce one item instead of another

2.

1 point

If a farmer increased apple production from 10 cartons to 20 cartons and as a consequence the farmer’s wheat production fell from 10 tonnes to 8 tonnes, the opportunity cost of increasing the apple production is:

the work time involved with growing more apples

10 cartons of apples

the money spent growing the extra apples

2 tons of wheat

3.

1 point

Which needs and wants will be satisfied depends on which of following:

the marketplace

how much money a person has and what the product is

suppliers willingness to sell and the consumers to buy

the consumers willingness to buy and ability to buy

4.

1 point

As resources are limited, communities need to look at how to best allocate resources to satisfy the needs and wants of its citizens. This refers to:

the law of elasticity

opportunity cost

scarcity

the economic problem

5.

1 point

Which is the most true for the law of demand:

people will buy more items if the product is scarce and hold more value

producers will make more profits by offering a higher number of items for sale

people will buy more of a product at a lower price than at a higher price

producers will maximise profits by producing less products to sell at a higher price

6.

1 point

When making economic decisions, people need to consider what they need to give up in order to satisfy a particular want. This refers to:

scarcity

the factors of production

opportunity cost

the economic problem

7.

1 point

Which of the following is most true for the law of supply:

as price increases, suppliers will offer less products to maximise profits

if less products are made, the supplier must increase the price to maximise profits

as the price of a good increases, suppliers will attempt to maximise profits by increasing the quantity of product sold

as price decreases, people will buy more products

8.

1 point

In economics a resource is:

something that has been taken out of the ground

anything that people use to satisfy their needs and wants

a naturally occurring object

produced by workers and managers

9.

1 point

A shopper at Woolworths wants to buy a 24 pack carton of Coke but notices that Fanta on special for $4 less than the price of Coke. The consumer decides to purchase the carton of Fanta instead. The opportunity cost is:

Woolworths

the carton of Coke

the carton of Fanta

the $4 price difference

10.

1 point

The basic economic problem is that:

people do not always earn enough money to satisfy their needs

peoples wants are unlimited and resources are limited

some resources are more scarce than others

not everyone has enough money to satisfy their wants