MCQs:
Which of the following best defines the nature of the economic problem?
A. The scarcity of resources
B. The unlimited wants of society
C. The need for government intervention
D. The equilibrium of supply and demand
Which of the following is NOT a factor of production?
A. Labor
B. Land
C. Money
D. Capital
What is the opportunity cost of choosing to go to a movie instead of studying for an exam?
A. The price of the movie ticket
B. The time spent watching the movie
C. The grade you could have earned by studying
D. The cost of popcorn at the theater
Which of the following is an example of a renewable resource?
A. Coal
B. Oil
C. Solar energy
D. Natural gas
Which factor of production includes the tools, machines, and buildings used in production?
A. Labor
B. Land
C. Capital
D. Entrepreneurship
What is the opportunity cost of producing one more unit of a good?
A. The average cost of production
B. The marginal cost of production
C. The total cost of production
D. The fixed cost of production
Which of the following best describes the concept of specialization in production?
A. Focusing on producing a variety of goods
B. Focusing on producing only one type of good
C. Producing goods only for domestic consumption
D. Producing goods for export only
Which factor of production includes the natural resources used in production?
A. Labor
B. Land
C. Capital
D. Entrepreneurship
What is the opportunity cost of investing in a new business venture?
A. The potential profit from the venture
B. The time spent researching the market
C. The cost of materials needed for production
D. The cost of hiring employees
Which of the following is an example of a non-renewable resource?
A. Wind energy
B. Water
C. Timber
D. Fossil fuels
Short Answers (Definitions and Listings):
11. Define the concept of scarcity.
12. List the four factors of production and provide a brief description of each.
13. Explain the concept of opportunity cost and provide an example.
14. Define the concept of specialization in production.
15. List three renewable resources and three non-renewable resources.
16. Explain the role of entrepreneurship as a factor of production.
17. Define the concept of production possibility curve.
18. List and describe the three basic economic questions every society must answer.
19. Explain the concept of division of labor and its impact on production.
20. Define the term capital in economics and provide examples of capital goods.
