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

Created with That Quiz — where test making and test taking are made easy for math and other subject areas.