Ecs1501 - Study Unit 1 -test

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
Learn about Our Editorial Process
| By Toxic2
T
Toxic2
Community Contributor
Quizzes Created: 1 | Total Attempts: 264
Questions: 5 | Attempts: 264

SettingsSettingsSettings
Ecs1501 - Study Unit 1 -test - Quiz

STUDY UNIT 1:WHAT ECONOMICS IS ALL ABOUT


Questions and Answers
  • 1. 

    Select the incorrect statement with reference to economic theory.

    • A.

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

    • B.

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

    • C.

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

    Correct Answer
    B. Economics is a social science concerned with the efficient use of unlimited goods and service to achieve maximum satisfaction of human wants.
    Explanation
    Resources are scarce and therefore the goods and services that can be produced are limited. Wants are, however, unlimited.


    Go to LO1.1

    Rate this question:

  • 2. 

    Scarcity refers to......: 

    • A.

      The limited resources available in an economy

    • B.

      Limited wants and needs.

    • C.

      Poverty suffered by large parts of the population.

    Correct Answer
    A. The limited resources available in an economy
    Explanation
    Theory, refer to LO 1.1


    Go to LO1.1

    Rate this question:

  • 3. 

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

    • A.

      The price of the goods purchased.

    • B.

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

    • C.

      Opportunity cost.

    Correct Answer
    C. Opportunity cost.
    Explanation
    Theory, refer to LO 1.1.


    Go to LO1.1

    Rate this question:

  • 4. 

    The production possibility curve illustrates...... 

    • A.

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

    • B.

      Scarcity, choice and opportunity costs.

    • C.

      What, how and for whom to produce.

    Correct Answer
    A. The combination of factors of production used to produce certain goods and services.
    Explanation
    Theory, refer LO 1.2.


    Go to LO1.2

    Rate this question:

  • 5. 

    Use the graph below to answer question 5.   The opportunity cost of increasing the quantity of vegetables from 0 to 1400 is....

    • A.

      400 kg of vegetables.

    • B.

      200 loaves of bread

    • C.

      800 loaves of bread

    Correct Answer
    B. 200 loaves of bread
    Explanation
    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

    Rate this question:

Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.