1. 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 produce on its production possibility frontier.
- inflation is inevitable.
- the economy cannot achieve economics growth every year.
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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?
- Negative externalities.
- Merit goods.
- Positive externalities.
- Demerit goods.
3. Which one of the following is a positive economics statement?
- The rate of unemployment is too high.
- The national minimum wage rate should be increased to £5 per hour for all workers.
- The extent of income inequality in the United Kingdom has increased over the last 30 years.
- Nurses working the National Health service should be on a maximum working week of 50 hours per week.
4. Which one of the following is NOT an example of the use of government fiscal policy? A change in
- the size of the budget deficit.
- a tax imposed on imports of goods and services.
- interest rates.
- government spending on National Health service.
5. Good X is an inferior good. A rise in consumers' income is likely to lead to:
- A rise in demand and an increase in market price and quantity sold.
- A fall in demand and an increase in market price and quantity sold.
- A fall in demand and an fall in market price and quantity sold.
- An expansion of market supply following an increase in demand.
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