Scarcity, Choice and Opportunity Cost 1 - A Level Economics MCQ Quiz

Question 1/8

Which of the following is an example of a good that is free to the user, but is NOT a free good in the economic sense?

Sunlight Moonlight The wind A public park maintained by the local council Rainfall

Question 2/8

Which of the following best describes the fundamental economic problem?

Income and wealth are unevenly distributed between individuals Resources available to produce goods and services are limited, but human wants for them are not Governments have unequal budgets across regions Firms cannot always predict consumer demand accurately Some goods create costs for third parties not involved in their production or consumption

Question 3/8

Choice arises as part of the economic problem because:

producers can always increase output to meet any level of demand. government intervention removes the need for individuals to make decisions. firms can produce every good demanded without limit. consumers have unlimited income to spend on goods and services. scarce resources mean that satisfying one want involves giving up the next best alternative.

Question 4/8

Which one of the following is classified as a factor of production?

The price charged for a box of fish at market A fishing fleet's boats and nets The wages paid to a company's employees The revenue generated from online sales The profit earned by a small business

Question 5/8

Which factor of production earns wages as its reward?

Capital Enterprise Government Labour Land

Question 6/8

The fundamental purpose of producing goods and services in an economy is to:

reduce a country's trade deficit. increase a country's exports. provide employment opportunities. generate tax revenue for the government. satisfy the wants of consumers.

Question 7/8

Which of the following is most accurately classified as a need rather than a want?

A holiday abroad A daily takeaway coffee Clean drinking water A streaming subscription service A new pair of designer trainers

Question 8/8

A student has enough time after school to either play in a five-a-side football match or complete a part-time shift at a local cafe, but not both. If the cafe increases the pay it offers for that shift, what is the most likely effect on the opportunity cost of playing in the football match?

The opportunity cost of playing football is unaffected, since football has no monetary value. The opportunity cost of playing football decreases. The opportunity cost of the cafe shift increases. The opportunity cost of both activities decreases equally. The opportunity cost of playing football increases.