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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?

  • Air
  • The sea
  • Water
  • Views

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.