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6. What is specialisation?
- When a country focuses on consuming goods they have an advantage in producing.
- When a country focuses on producing goods they have an advantage in producing.
- When a country creates specific trade deals with its neighbouring economies.
- When a country produces goods that are hugely desirable across the world.
7. Which of these is not an example of a free good?
8. What does a production possibility frontier illustrate?
- The opportunity cost of producing two goods in an economy instead of one.
- The outcome of production decisions made by the Government.
- The trade-offs facing an economy that produces only two goods.
- The benefits of comparative advantage.
9. Which of these is not an economic agent?
- Consumers
- GDP
- Governments
- Workers
10. Which of these are not an alternative view of consumer behaviour?
- Jealousy
- Influence of other people
- Habitual behaviour
- Mathematical Confusion
11. Which of these is not a characteristic of a free market?
- Efficient
- Smaller tax revenues
- Lots of competition
- Bigger wealth inequality
12. Which of these is not a disadvantage of division of labour?
- Machinery may eventually replace workers
- The firm receives a negative reputation for its treatment of workers
- Difficult to motivate
- High labour turnover
13. Which of these is not an advantage of division of labour?
- More communication between staff and managers
- Output increases
- More efficient
- Workers can build skill level
14. What is utility?
- The satisfaction gained from the production of merit goods.
- The satisfaction gained from the production of a good/service.
- The satisfaction gained from the consumption of a good/service.
- The satisfaction gained from efficiency in the production process.
15. What is the basic economic problem?
- People's wants are unlimited but resources to satisfy these wants are limited.
- The opportunity cost of a production decision.
- The growing consumption of the human race.
- The drain on resources as populations around the world increase.