Admire International Aacademy Econ 10.

1 Final Exam Review

Sections: A,B,C,D&E Total Score: ______/25

Section A : (True/ False - 5 items) Mark:____/5

Write (T) for true or (F) for false next to each of the statements below.

1. Economics is the study of how scarce resources are allocated to fulfill the finite
wants of consumers. (____)

2. We use scarce resources to produce the goods and services we need or want.(_____)

3. The quantity of goods and services available is finite because our resources are
unlimited.(__)

4. Goods are tangible objects (i.e. capable of being touched), but services are
not.(____)

5. To the economist, all goods and services that don’t have a price are relatively
scarce.(____)

Section B : (Matching - 5 items) Marrk: ____/5

Match statements from column (A) with their correct completions from column (B)

(A) (B)
6. People do not have infinite incomes and so they do not have an opportunity cost
when they are consumed.
7. Air and salt water, are not limited in and that generates the need to make choices
supply
8. Any good or service that has a price, are the free market and the planned
economy systems.
9. The two major resource allocation is known as an economic good.
systems
10. Resources are relatively scarce and so they need to make choices whenever they
wants are infinite, purchase goods and services.
Section C: (Completion- 5 items) Marrk: ____/5

Fill in the blanks with the correct word/words from the list provided to complete
the statement.

(alternative - utility - Land - Capital - scarcity - resources - production - of- factors-

opportunity cost - investment)

11. In economics, _____________________is what you give up in order to have

something else.
12.Due to______________, resources have to be combined in optimal ratios to ensure
the economy produces at its best.

13.Opportunity cost is defined as the next best _________________ foregone when an

economic decision is made.

14.The four resources that allow an economy to produce goods and services are
known as __________________________.
15. _____________________ includes all natural resources.

Section D: (MCQ - 5 items) Marrk: ____/5

Select &circle the letter of the correct answer to each of the following questions.

16. Cultivated products, such as wheat, are renewable. Fossil fuels, however, are
_____________________.
a. scarce
b. free
c. non-renewable
d. unlimited

17. Labour is the human factor. It is the physical and mental ____________________
of the existing workforce to production.
a. allocation
b. contribution
c. application
d. distribution
18. There are two types of capital: physical and ___________________.
a. manual
b. mechanical
c. industrial
d. human
19. _________________________ capital is used to produce goods and services in the
economy.
a. Mental
b. Physical
c. Human
d. Mixed
20. Investment in human capital contributes to ___________________.
a. economic growth
b. civilization
c. physical fitness
d. global understanding

Section E: (Short Answers - 5 items) Marrk: ____/5

Provide short answers or comments to each of the questions/statements below.

21. Management is the organising and risk-taking factor of production. Explain.

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
22. What’ s the immediate benefit (use) of the factors of production?
_____________________________________________________________________
_____________________________________________________________________
________________________________________________________________
23. What is the process of buying ‘factors of production’ called?
_____________________________________________________________________
_____________________________________________________________________
24. Mention two facts that you know about a centrally-planned economy.
_____________________________________________________________________
_____________________________________________________________________
25. What does a production possibility curve show?
_____________________________________________________________________
_____________________________________________________________________