Economics section A

This is based on all choice questions from unit 1 of microeconomics. Most of these questions are from many different past papers. 

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1. economics is primarily concerned with the study of

  • allocating scare resources to satisfy unlimited wants.
  • determining how the government should allocate resources.
  • how to make more effective use of resources through reducing wants.
  • how new wants and economic resources are produced.
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Other questions in this quiz

2. What are goods provided by the government for people who are deemed to need them called?

  • Positive externalities.
  • Negative externalities.
  • Merit goods.
  • Demerit goods.

3. Which one of the following is NOT an example of the use of government fiscal policy? A change in

  • a tax imposed on imports of goods and services.
  • interest rates.
  • the size of the budget deficit.
  • government spending on National Health service.

4. A Demerit good is:

  • goods people would not come together to pay for if in a free market economy.
  • unaffordable, under priced and under produced.
  • seen as undesirable, over produced and over priced.
  • a good that are needed to make other good.

5. In a market based economy the scarcity of factors of production means that

  • consumers must inevitably consider the opportunity cost of their choices.
  • the economy cannot achieve economics growth every year.
  • the economy cannot produce on its production possibility frontier.
  • inflation is inevitable.

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