What are the four main factors of production?

Land, labour, capital, enterprise

Choice is important in the basic economic problem because...

limited economic resources have many alternative uses

If a consumer is acting rationally, we mean that...

they weigh up the costs and benefits of each decision

The existence of scarcity implies that...

Households, firms and governments must make choices

Opportunity cost is best defined as the cost of a choice...

measured by the next best alternative forgone

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HASN A-Level Economics (Year 12): Introduction to Economics (08.09.17)

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Answers

1
What are the four main factors of production?
Land, labour, capital, enterprise
Land, labour, money
Land, money, entrepreneurship, labour
Land, labour, capital, land
2
Choice is important in the basic economic problem because...
wants increase with income
limited economic resources have many alternative uses
scarce economic resources are distributed equally
high demand leads to higher market prices
3
"Fruit and vegetables should be subsidised by the government to encourage healthy eating"
This is a normative statement
This is a positive statement
4
If a consumer is acting rationally, we mean that...
they won't take a job that pays low wages
they save a proportion of their monthly income.
they will always buy the cheapest product available to them
they weigh up the costs and benefits of each decision
5
Which of the following is not a factor of production?
Buildings and machinery
A bank account
Labour
Farmland
6
See picture...
£6
£24
£4
£20
7
The existence of scarcity implies that...
Households, firms and governments must make choices
There are no free goods
Only rich households can save
Supplies of factors of production cannot be increased
8
Gryff is offered £100/cash, or £150/vouchers. What is the opp. cost of choosing the vouchers?
£150
£100
£50
The alternative use of her time
9
Individuals and businesses must make choices because...
of the law of diminishing returns
they must act rationally
of resource scarcity
[none of the above]
10
Opportunity cost is best defined as the cost of a choice...
buying an additional unit of the good or service
measured by the next best alternative forgone
measured by the cost of products bought
measured by the time taken to consume the good or service

HASN A-Level Economics (Year 12): Introduction to Economics (08.09.17) Flashcards | StudBud