Exam_Economics_Question_SS1
  • 1. The study of how people make choices in the use of scarce resources is known as
A) economics
B) sociology
C) geography
D) political science
  • 2. Economics is best defined as the study of
A) how to make profit
B) the production of goods only
C) money and banking
D) human behaviour as a relationship between ends and scarce means
  • 3. Who is regarded as the father of modern economics?
A) Adam Smith
B) Karl Marx
C) David Ricardo
D) John Keynes
  • 4. The central concept in economics is
A) money
B) scarcity
C) demand
D) utility
  • 5. The branch of economics that studies the whole economy is
A) political economics
B) business economics
C) micro-economics
D) macro-economics
  • 6. The term 'choice' in economics arises because
A) goods are abundant
B) wants are limited
C) resources are scarce
D) people are greedy
  • 7. Which of these best describes opportunity cost?
A) The next best alternative forgone
B) The total benefit gained
C) cost of production
D) The amount of money spent
  • 8. Wants are said to be unlimited because
A) man's resources are few
B) money is scarce
C) governments are corrupt
D) new wants keep arising
  • 9. The economic problem of scarcity means
A) prices are always high
B) consumers are rich
C) there are not enough resources to satisfy wants
D) there too many goods
  • 10. The study of economics helps individuals to
A) make rational decisions
B) ignore opportunity costs
C) waste resources
D) spend carelessly
  • 11. Government studies economics mainly to
A) formulate good policies
B) increase corruption
C) exploit the poor
D) raise salaries
  • 12. Economics contributes to national development by
A) Helping efficient resource use
B) encouraging waste
C) discouraging production
D) increasing inequality
  • 13. Knowledge of economics helps a consumer to
A) buy more than needed
B) waste resources
C) avoid saving
D) make wise spending decisions
  • 14. Economist help businesses by
A) printing money
B) determining market trends
C) producing advertisments
D) increasing wages automatically
  • 15. The basic economic problems arise because
A) prices are low
B) population is high
C) governments are weak
D) wants are unlimited and resources are limited
  • 16. 'What to produce' refers to
A) cost of production
B) type of goods to produce
C) location of production
D) choice of techniques
  • 17. 'How to produce' refers to
A) who will consume the goods
B) the method or technique of production
C) the time of production
D) the total output
  • 18. 'For whom to produce' means
A) deciding what to export
B) determining the cost
C) choosing who gets the goods and services
D) hiring workers
  • 19. Which of the following helps solve the basic economic problems?
A) Trade unions
B) Scarcity
C) Inflation
D) Choice
  • 20. Production in economics means
A) creating goods and services to satisfy human wants
B) selling goods at a market
C) buying and storing
D) manufacturing only
  • 21. The major aim of production is to
A) satisfy human wants
B) increase population
C) reduce exports
D) create employment
  • 22. The process that changes raw-materials into finished goods is called
A) exchange
B) distribution
C) consumption
D) manufacturing
  • 23. Primary production involves
A) transport and trade
B) mining, farming and fishing
C) advertising
D) banking and insurance
  • 24. Secondary production includes
A) teaching
B) manufacturing
C) farming
D) banking
  • 25. Tertiary production involves
A) service industries
B) construction
C) mining
D) manufacturing
  • 26. When goods are moved from factory to consumers, this is
A) distribution
B) consumption
C) exchange
D) production
  • 27. Which of these is a form of indirect production?
A) Washing your own clothes
B) Tailor sewing for pay
C) self-cooking
D) Building your own house
  • 28. The reward for the successful organization of production is
A) profit
B) rent
C) interest
D) wage
  • 29. How many major factors of production are there?
A) Five
B) Four
C) Three
D) Two
  • 30. The reward for land is
A) wage
B) profit
C) interest
D) Rent
  • 31. Land as a factor of production refers to
A) capital
B) soil only
C) buildings and machines
D) all natural resources used in production
  • 32. Labour refers to
A) buildings
B) all human efforts used in production
C) land
D) machines
  • 33. The reward for labour is
A) rent
B) wage
C) profit
D) interest
  • 34. Capital is important in production because it
A) decreases output
B) increases efficiency
C) reduces unemployment
D) causes scarcity
  • 35. The entrepreneur is responsible for
A) organizing and managing the factors of production
B) earning rent
C) making government policies
D) providing only labour
  • 36. The reward for the entrepreneur is
A) wage
B) rent
C) interest
D) profit
  • 37. Which of the following IS NOT a reward of any factor of production?
A) Rent
B) Interest
C) Subsidy
D) Profit
  • 38. In the study of economics land, labour, capital and entrepreneur are referred to as factors of production. These factors produce commodities only if they are
A) purchased for the purpose of production
B) brought into the factory
C) combined in the production process
D) profitable to the production process
  • 39. Production resources can also be called
A) factors of production
B) items of production
C) labour and material resources
D) primary productive
  • 40. Economics is founded on the principle that
A) human needs are easy to define
B) material things are more than human wants
C) human wants are limitless while the means to satisfy them are limited
D) human wants are more than human wants
  • 41. An example of circulating capital used by an entrepreneur is
A) raw materials
B) factory building
C) electric power
D) pipe-borne water
  • 42. Immobility of land in the geographical sense is applicable ONLY to
A) all natural resources
B) land as the earth surface
C) vegetation and it's products
D) fishes in water bodies
  • 43. Which of the following factors of production is the most mobile?
A) Entrepreneur
B) Capital
C) Labour
D) Land
  • 44. The act of combining factor inputs in order to obtain specific output is known as
A) factor procurement
B) production
C) industrialization
D) manufacturing
  • 45. Capital as a factor of production is important because
A) people can work without capital
B) it provides money which is essential for the growth of business
C) most tasks can be done with bare hands
D) it enables us to carry out tasks which cannot be done by human effort only
  • 46. Which of the following factors of production consists of man-made goods?
A) Entrepreneur
B) Land
C) Capital
D) labour
  • 47. Which of the following IS NOT regarded as labour?
A) Physical effort
B) Mental effort
C) Immobility of labour
D) Skillful effort
  • 48. Choice is necessary because resources
A) are scarce
B) are available
C) are limited
D) are available
  • 49. Economic problems arise because of
A) inadequate resources
B) the absence of skilled labour
C) the creation of artificial scarcity
D) corruption in high places
  • 50. Which of the following is a basic economic problem of a society?
A) Price of commodity
B) Scarcity
C) level of inflation
D) What to produce
Created with That Quiz — where test making and test taking are made easy for math and other subject areas.