Admires International Academy Grade 10.

1 Economics Quiz- 1
Name: ____________________________________________________________

Mark each of the following statements either true(T) or false (F)

True & False (__________/10) marks

1. An opportunity cost is the cost of a choice that has been made by a consumer or a producer. (T)

2. Being able to produce more of a certain product by producing less of another product has
nothing to do with opportunity cost. (F)

3. Applying sound opportunity cost reasoning helps to enhance the efficiency of allocation of
resources. (T)

4. The concept of opportunity cost is relevant to Government policies because these policies have a
value to the society. (T)

5. Almost all alternatives are often known and well-defined for consumers to decide on which to
obtain and which to discard. (F)

6. The opportunity cost concept is mere jargon that does not have any real econmoic
significance.(F)

7. It’s not necessary to allocate resources in efficient ways. (F)

8. Economic resources are important because they are abundant. (F)

9. Scarcity and lack of resources are equivalent terms. They mean the same thing, more or less. (F)

10. All factors of production have alternative uses. (F)

Circle the letter of the correct answer to each of the following MCQ:

11.A consumer deals with a trade-off when he ___________________

a. wishes to minimize his desire for a product

b. lacks specific information about a product or service

c. has to make a choice bewteen products and services

d. All of the above

12. The economy’s main task is to __________________.
a. satisfy consumers’ infinite needs and wants using limited resources
b. spare rare resources and store them for future generations
c. ensure that everybody maximizes his/her welfare at any cost
d. eliminate opportunity so that planned economic growth is achieved

13. The basic economic problem is caused by _____________________.

a. poor planning and distribution of wealth among people
b. corruption and continuous lack of transparency
c. scarcity of resources.
d. mismanagement and selfish monopoly of natural resources

14. The economic problem can be solved ________________________

a. through optimal allocation of resources
b. if there is enough understanding and willingness to make that possible
c. in the next century or so if everything goes well
d. None of the above

15. Water is calssified as a ____________________________________

a. renewable resource
b. nonrenewable resource
c. a major factor of production
d. free good available everywhere

Fill in the gaps with the correct word/words

16. ___________________of resources is the main reason that necessitastes proper allocation.

17. Any economy must _________________resources among alternative products and services.

18. The____________________of resources must be effective and efficient to avoid wasting them.

19. Equipment is part of the factor of production called ___________________________.

20. The two major activities in an economy are _________________________and consumption.

Answers: 16-20

16. Scarcity
17. allocate
18. allocation
19.capital
20. production