You are on page 1of 2

Question 1 If an economy is productively efficient: a) Everyone is wealthy b) Resources are unemployed c) More of one product can only be produced

if less of another product is produced d) The distribution of income is equal Question 2 Economic growth can be shown by: a) An inward shift of the production possibility frontier b) A movement down the production possibility frontier c) An outward shift of the production possibility frontier d) A movement up the production possibility frontier Question 3 As resources are shifted from one industry to another this can be shown by: a) An inward shift of the production possibility frontier b) A movement along the production possibility frontier c) An outward shift of the production possibility frontier d) A outward shift in the demand curve for the products Question 4 In a free market the combination of products produced will be determined by: a) Market forces of supply and demand b) The government c) The law d) The public sector Question 5 If an economy moves from producing ! units of A and " units of # to producing $ As and %#s& the opportunity cost of the %th # is: a) $As b) !As c) 'As d) A Question 6 An economy may operate outside the (roduction (ossibility )rontier if: a) It is not utilising its resources fully b) It is being productively efficient c) It is a mi*ed economy d) It is trading with other economies Question 7 The resources in the economy do not include: a) +emand b) ,and c) ,abour d) -apital Question 8 The resources in an economy are: a) -onstantly increasing

hich of the following is not one of the basic economic questions/ a) .hat to produce b) .ho to produce for c) 0ow to produce d) 0ow to ma*imi1e economic growth Question 11 .b) )i*ed at any moment c) -onstantly decreasing d) Able to be transferred easily between industries Question 9 An outward shift of the production possibility frontier may be caused by: a) An increase in demand b) More government spending c) #etter training of employees d) (roductive inefficiency Question 10 .hich of the following is a normative statement in economics/ a) More spending by the government reduces poverty b) 0igher ta*es lead to less desire to work c) The 23 economy is growing fast relative to other European 2nion members d) The government should concentrate on reducing unemployment .