G10-Foundation Economics-Assignment 1

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4. Which of the following is an example of a scarce resource?

A. Land.

B. Labor.

C. Capital.

D. Electricity.

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E. Each of these is a scarce resource.
5. Economists speak of the fact that human beings have the willingness and ability to consume endlessly, but that
there is a limit to the amount of almost everything that we would wish to consume.

Which of the following terms describes this state of human affairs?

A. Trade-offs

B. Scarcity

C. Opportunity Cost

D. Subsidy

E. Incentive

6. The graph below represents the possible combination of pens and pencils that can be produced by Country A

If country A is current producing 4 pencils but decide it wants to increase production to 9 pencils, what will it
opportunity costs be for the additional pencils?

A. 6 pencils

B. 10 pencils

C. 2 pens

D. 5 pens

E. 20 pencils
7. Which point on the above graph could represent 10% unemployment of labor?

A. A

B. B

C. C

oD.E. R
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È x
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x
X
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 9. What is Free good? Give an example of Free good.

A product which require any resources

doesn't

to make it and so doesn't have an opportunity cost

Example
sunlight Air
10. What is economic good? Give an example of economics good.

A product which requires resources to produce

it and therefore has an opportunity cost

fruit