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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