Practise scarcity, opportunity cost, factors of production, economic methodology, resource allocation, production possibility curves and classifications of goods.
What is essential to eliminate scarcity?
the existence of sufficient resources to meet all needs and wants
producers consistently produce in excess of demand
the government has a surplus budget
there is equilibrium in all markets
A
What is a common criticism of economics?
It fails to establish theories of economic behaviour.
It is unable to construct models of how an economy might work.
It lacks the ability to use and apply mathematics.
It is very difficult to undertake laboratory experiments in economics.
D
The nature of a typical car assembly plant has changed. The industry has fewer firms, operates on larger sites and has more automated machinery.
How is this change most likely to have affected the relative use of factors of production in the industry?
increased relative use
decreased relative use
capital and enterprise
labour and land
enterprise and labour
land and capital
labour and land
capital and enterprise
land and capital
enterprise and labour
D
Which activity illustrates the consumption of a 'free' good?
a farmer using water taken from a river
a patient visiting a medical facility provided by a charity
a person breathing air in the countryside
a person eating their birthday cake given as a gift by a friend
C