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As Economic - Chapter 1

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As Economic - Chapter 1

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As Economic - Chapter 1

Created by

Katherine Lim
Katherine Lim
Malaysia

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As Economic - Chapter 1
 

As Economic - Chapter 1Online version

As Economic - Chapter 1

by Katherine Lim
1

An economy has limited resources but unlimited wants. Which economic problem does this create?

2

A farmer can use a fixed area of land to produce either wheat or vegetables. The farmer decides to produce more wheat and gives up the opportunity to produce 500 tonnes of vegetables. What is the opportunity cost of producing the additional wheat?

3

A country moves from point P to point Q on its production possibility curve (PPC). Manufacturing output increases by 100 units while agricultural output decreases by 60 units. What is the opportunity cost of one additional unit of manufactured goods?

4

A PPC is bowed outwards from the origin. What is the most likely reason for this shape?

5

An economy moves along its PPC and increasingly more resources are transferred from agriculture to manufacturing. Why is the opportunity cost of manufacturing likely to increase?

6

Which combination correctly identifies the four factors of production?

7

Workers in a factory are each responsible for producing only one part of a product. Which economic concept is illustrated?

8

Which good is most likely to be classified as a public good?

9

A person benefits from street lighting without making any payment towards its provision. Which concept best describes this person?

10

Which function of money allows the value of different goods and services to be compared?

 
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