Economics Practice Quiz 123

Q1.What happens if the total corn produced does not match the total corn people want to consume?

A. Resources may be reallocated to or from corn production B. Corn prices will rise C. People will stop eating corn D. Farming units will shut down

Q2.What is the assumption made in the text about production and consumption within a society?

A. All goods produced are consumed by people in the society with no external trade B. Goods are exported to other societies C. Some goods are wasted D. Production exceeds consumption

Q3.What does the text say about the resources of society compared to what people collectively want?

A. Resources are scarce B. Resources are abundant C. Resources are unlimited D. Resources are equally distributed

Q4.What is the consequence of a family wanting a bigger house?

A. It may have to give up having more arable land B. It will have to work harder C. It will get a loan D. It will reduce education expenses

Q5.What does the text imply about the relationship between individual scarcity and societal scarcity?

A. Both individuals and society face scarcity of resources B. Only individuals face scarcity C. Only society faces scarcity D. Scarcity is not a problem for society

Q6.What is the central problem of an economy as summarised in the text?

A. How to use scarce resources B. How to increase production C. How to reduce consumption D. How to achieve equality

Q7.What does the text say about the resources of an individual?

A. They are scarce B. They are unlimited C. They are abundant D. They are equally distributed

Q8.What is the result of any allocation of resources?

A. Production of a particular combination of goods and services B. Equal distribution of income C. Maximum satisfaction D. Economic growth

Q9.What are the central problems of any economy?

A. Allocation of scarce resources and distribution of final goods and services B. Production of luxury goods and military services C. Deciding between agricultural and industrial products D. Choosing between basic and higher education

Q10.What is the collection of all possible combinations of goods and services that can be produced from a given amount of resources and technological knowledge called?

A. Production possibility set B. Production possibility frontier C. Resource allocation set D. Economic mix

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Economics Practice Quiz 123