Ecs1501 - Study Unit 1 -test - Quiz, Flashcards & Trivia

1. In economic theory choice gives rise to a cost and this is referred to as.........

The price of the goods purchased.

The cost of factors of production required to fulfil the choice.

Opportunity cost.

Theory, refer to LO 1.1.

Go to LO1.1

Explanation

Theory, refer to LO 1.1.

Go to LO1.1

About This Quiz

ECS1501 - Study Unit 1 - Test focuses on fundamental economic concepts such as scarcity, opportunity cost, and economic theory. It assesses understanding through theoretical questions and practical... see moreapplication via graphs, targeting essential analytical skills in economics. see less

2. Scarcity refers to......:

The limited resources available in an economy

Limited wants and needs.

Poverty suffered by large parts of the population.

Theory, refer to LO 1.1

Go to LO1.1

Explanation

Theory, refer to LO 1.1

Go to LO1.1

3. The production possibility curve illustrates......

The combination of factors of production used to produce certain goods and services.

Scarcity, choice and opportunity costs.

What, how and for whom to produce.

Theory, refer LO 1.2.

Go to LO1.2

Explanation

Theory, refer LO 1.2.

Go to LO1.2

4. Select the incorrect statement with reference to economic theory.

Scarcity, wants, choice and opportunity cost are some of the main elements of economics.

Economics is a social science concerned with the efficient use of unlimited goods and service to achieve maximum satisfaction of human wants.

Economics is concerned with a systematic understanding of patterns of production, consumption and distribution of goods and services.

Resources are scarce and therefore the goods and services that can be produced are limited. Wants are, however, unlimited.

Go to LO1.1

Explanation

Resources are scarce and therefore the goods and services that can be produced are limited. Wants are, however, unlimited.

Go to LO1.1

5. Use the graph below to answer question 5.

The opportunity cost of increasing the quantity of vegetables from 0 to 1400 is....

400 kg of vegetables.

200 loaves of bread

800 loaves of bread

If this economy was producing zero vegetables it would have been able to produce 1000 loaves of bread. If its choices change and it now wants to produce 1400 kgs vegetables and bread then it will have to move its resources from producing bread and put them to work growing vegetables. According to this graph it means that the economy would have to give up 200 loaves of bread (a movement along the Y axis from 1000 to 800).

Go to LO1.2

Explanation

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