The Patriots School

Economics 0III- Test

Name:__________________________________ Max. Marks: 25 Marks
Date: _____________________________ Time Allotted: 2 periods

Section A: MCQs [04 Marks]

1. An increase in the number of manufacturing robots in the car manufacturing industry represents an
increase in the quantity of which factor of production?
A capital B enterprise C labour D land

2. Which combination of terms gives the general definition of the economic problem?
A) bigger families, less food, starvation
B) falling supply, rising demand, shortage
C) higher population, fewer jobs, unemployment
D) limited resources, unlimited wants, scarcity

3. The following are four ways factors of production are used.

What is likely to require the greatest use of the factor enterprise?
A) a carpenter making wooden articles in his leisure time for sale at a monthly market
B) a corn farmer negotiating with other farmers to hire expensive machinery
C) a food shop owner sometimes selling flowers in the shop
D) a householder harvesting vegetables grown at home

4. New oil reserves are discovered. What has increased in supply?

A capital B enterprise C labour D land

Section B: Structured questions [21 marks]

Q1. Bangladesh is striving to create a stable economy. It faces many challenges among which are the
low-lying areas of Bangladesh which are prone to flooding each year. Crops are lost and thousands of
people lose their homes. During times of severe flooding, roads and railways are damaged and farmers
find it impossible to get their dwindled crops to the market. They find it difficult to even satisfy their
needs. The government tries restoring the infrastructure, only to be damaged and destructed the
following year.
(a) Explain the concept of opportunity cost, if the government keeps on spending on the infrastructure.
/4
(b) Using a demand and supply curve, explain the impact of a global pandemic on price mechanism/7
(c) Explain any three factors that may influence demand of a product. /6
(d) Explain how some factors of production are mobile while others are not. /4