Ecucation
Economics & Production Quiz
Test your knowledge of economics and production factors with our comprehensive quiz! Focusing on key concepts like market failure, opportunity costs, and productivity, this quiz is designed to enhance your understanding of essential economic principles.
Key Features:
- 31 challenging questions
- Multiple choice format
- Immediate feedback on your answers
1 In 2016, 20 billion barrels of oil and 1.6 billion barrels of natural gas were discovered in Texas, US. Which factor of production has increased in the US due to this discovery?
A capital
B enterprise
C labour
D land
2 The diagram shows a production possibility curve (PPC). Which of these points shows the largest possible output of product Y currently achievable?
A
B
C
D
3 A student decides to take up a two year apprenticeship for which she will earn $10000 per year. After that she expects to earn $25000 per year. She could take an unskilled job which pays $16 000 per year instead of the apprenticeship. What is the opportunity cost in the two years of completing the apprenticeship?
$10 000
$12 000
$25 000
$32 000
4 Microeconomics analyses choices in various situations. Which area of economic study does it not include?
Costs and revenues of a firm
Individual consumer behaviour
Policies for economic growth
Wages for different occupations
5 What is a cause of market failure?
Many firms
Monopoly
Profit maximization
Specialization
6 The diagrams show the supply curve for an individual grower of tomatoe s and for the total market supply of tomatoes. What explains the similarity of the two curves?
As costs rise growers need to get a higher price to increase outpu
At the lower prices each grower supplies more tomatoes.
The profitability per unit is the same for all growers irrespective of output.
Supply is not always influenced by price.
7 The price of bread rose by 5% and the quantity demanded fell by 4%. What was the price elasticity of demand for bread?
Β0.4
Β0.8
Β1.25
Β2.0
8 Saudi Arabia specialises in oil extraction and refining. This is a capital-intensive industry with highly skilled labour. What might be a disadvantage of this specialisation?
Oil companies have increased training costs as each worker needs many different skills.
Oil companies have increased training costs as each worker needs many different skills.
Resource allocation is not efficient because a narrow range of goods is being produced
Workers may face a restricted range of job opportunities.
9 What would most likely cause a person to increase their savings?
A decision to plan for retirement
A fall in income
A fall in interest rates
A reduction in tax-free saving schemes
10 The graph shows women’s wages as a percentage of men’s wages in year 1 and year 2. Which statement is shown by the graph to be true?
2
Younger women earn more than older women.
Womenβs wages remain about the same between the ages of 40β50.
In year 2, all women were earning more than men.
In year 2, women were earning a higher percentage of menβs wages than in year 1.
11 People’s income decreases. How is the proportion spent on food and leisure likely to change?
A
B
C
D
12 The table shows total fixed and total variable costs at different levels of output for a firm.What happens as output rises?
Average fixed cost falls.
Average fixed cost rises.
Average variable cost remains constant.
Average variable cost rises.
13 The following information refers to a firm producing shoes. At which level of output does the firm maximise profits?
A
B
C
D
14 Which statement proves there has been an increase in productivity for a factory making tractors?
10% more workers results in a 10% increase in tractors produced each week
Output per worker increases from 3 tractors to 4 tractors per month
Production increases as more workers are hired.
Starting a night shift leads to an increase in production of 10 tractors a day.
15 When do economies of scale take place?
in the short run
If variable factors become fixed
When all factors of production are fixed
When all factors of production are variable
16 What is not included in public expenditure?
Capital spending by firms
Capital spending by firms
Investment in defence by the central government
Subsidies to bus companies from local government
17 When is the budget described as balanced?
When direct taxes and indirect taxes are equal
When exports and imports are equal
When government spending and government revenue are equa
When the demand for money and the supply of money are equal
18 A government increased revenue by increasing taxes on firms. Which tax did it increase?
Inheritance tax
Profits tax
Sales tax
Value added tax
19 Why are governments responsible for the defence of the country?
It is impossible to charge a price for defence.
It prevents individual citizens having access to weapons.
It prevents individual citizens having access to weapons.
Providing defence is very expensive.
20 Information about job vacancies on a government website has led to a decrease in short-term unemployment. What is the term for this type of unemployment?
Cyclical unemployment
Frictional unemployment
Frictional unemployment
Technological unemployment
21 The table shows figures for the real GDP of a country. A quarter is three months. During which quarters was the country experiencing a recession?
Quarters 1 and 2
Quarters 2 and 3
Quarters 3 and 4
He entire period
22 What would not be required in the construction of an index of consumer prices?
the selection of a base year
The selection of a representative range of items
The calculation of average wage levels
The weighting of each item in the index
23 The table gives information about three economic indicators in four countries. What may be concluded from this information?
Countries with higher inflation have higher interest rates.
Countries with higher interest rates have lower unemployment.
The country with the lowest inflation had the highest unemploymen
The country with the lowest unemployment had the lowest inflation.
24 Due to war, some people are living in absolute poverty. What is the main indicator of absolute poverty for these people?
Dependence on aid for medical treatment
Ack of transport to escape abroad
Living in tents in temporary camps
Receiving insufficient food for basic nutrition
Receiving insufficient food for basic nutrition
A
B
C
D
26 Which changes usually result when a country develops and is able to provide free healthcare and good living conditions?
A
B
C
D
27 Which protectionist measure would be most suitable for a government to use to support the growth in exports of an industry?
Embargo
Quota
Subsidy
Tariff
28 There has been an appreciation of the value of a country’s currency against other currencies. What effects will this have on prices of imports of raw materials and prices of exports of manufactured goods?
A
B
C
D
29 What is a disadvantage of increased specialisation by a country?
It becomes more reliant on imports to meet all its needs.
It reduces the potential for international trade.
It results in access to a greater variety of goods for consumers.
It results in lower costs for home produced goods.
30 The table shows components of Japan’s current account balance in trillion Yen (¥) for 2011 and 2012. Which balance improved between 2011 and 2012?
Balance of goods
Balance of services
Balance of primary income
Balance of secondary income
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