10 Question MCQ (including Assertion)

Question 1 of 10

This economic entity buys and uses goods and services, deciding how much to spend on essentials, non-essentials and savings. Which economic entity is being described?

A Producer B Consumer C Government D Financial institution

Select one option. Answers are shown after the test.

Question 2 of 10

What are the three key questions in economics, according to the chapter?

A What to produce, how to produce, for whom to produce B Who to hire, where to sell, when to expand C What to buy, when to buy, how much to pay D Why to save, when to save, how much to save

Select one option. Answers are shown after the test.

Question 3 of 10

What is a preference, as used in the chapter?

A A government policy B What a person chooses to have C A type of resource D A factor of production

Select one option. Answers are shown after the test.

Question 4 of 10

Which of the following is an example of a need, as distinguished from a want?

A A vacation B Food, water, clothing and shelter C A new gadget D A luxury item

Select one option. Answers are shown after the test.

Question 5 of 10

Why do the three key questions of economics arise, according to the chapter?

A Because wants are unlimited but resources are limited, creating scarcity, which forces choices B Because governments make laws about production C Because all countries have the same resources D Because prices never change

Select one option. Answers are shown after the test.

Question 6 of 10

What does every point on the PPC show about the relationship between the two goods?

A That both goods can be increased at the same time without limit B A trade-off, where producing more of one good means sacrificing some quantity of the other C That only one good can ever be produced D That both goods always fall together

Select one option. Answers are shown after the test.

Question 7 of 10

Match the following items given in Column A with those in Column B, and choose the correct option:

Column A
(i) Consumer
(ii) Producer
(iii) Government
(iv) Financial institution

Column B
(a) Collects taxes and spends on the country
(b) Keeps people's savings and gives loans
(c) Makes goods and services
(d) Buys and uses goods and services

A i-d, ii-c, iii-a, iv-b B i-c, ii-d, iii-b, iv-a C i-d, ii-a, iii-c, iv-b D i-b, ii-c, iii-a, iv-d

Select one option. Answers are shown after the test.

Question 8 of 10

Arrange the following in the correct order, based on how the chapter builds the idea of the Production Possibility Curve:
I. The different combinations are marked as points on a graph
II. A farmer's possible combinations of barley and wheat are worked out
III. The points are joined to form a downward sloping curve
IV. The curve is identified as the Production Possibility Curve

A II, I, III and IV B I, II, III and IV C II, III, I and IV D IV, II, I and III

Select one option. Answers are shown after the test.

Question 9 of 10

Match the following items given in Column A with those in Column B, and choose the correct option:

Column A
(i) Unlimited wants
(ii) Scarcity of resources
(iii) Alternative uses
(iv) Choices

Column B
(a) The same resource can be used in more than one way, so the best use is picked
(b) Forced by scarcity
(c) People always want more than is available
(d) Natural resources, labour and tools are limited in supply

A i-c, ii-d, iii-a, iv-b B i-d, ii-c, iii-b, iv-a C i-c, ii-a, iii-d, iv-b D i-b, ii-d, iii-a, iv-c

Select one option. Answers are shown after the test.

Question 10 of 10

What does a financial institution do, as an economic entity?

A Makes goods and services B Collects taxes and spends on the country C Keeps people's savings and gives loans D Buys and uses goods and services

Select one option. Answers are shown after the test.

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10 Question MCQ (including Assertion)