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