MCQs
What is the basic economic problem?
A. Scarcity
B. Unlimited wants
C. Limited resources
D. All of the above
Answer: D
Which of the following is not a factor of production?
A. Labor
B. Capital
C. Money
D. Land
Answer: C
Opportunity cost is:
A. The value of the next best alternative foregone
B. The total cost of production
C. The price of a good or service
D. The amount of money spent on a purchase
Answer: A
The factors of production include:
A. Land, labor, and capital
B. Goods and services
C. Money and resources
D. Technology and innovation
Answer: A
Which of the following is an example of capital in the factors of production?
A. Tools and machinery
B. Land
C. Labor
D. Natural resources
Answer: A
Short Answers (Definitions and Listings)
Define scarcity and explain how it relates to the economic problem.
List the three main factors of production and provide examples of each.
Explain the concept of opportunity cost with an example.
Define land as a factor of production and give an example.
List and explain the four main components of the production process.
Define entrepreneurship and discuss its role in the economy.
Explain the concept of production possibility frontier and how it relates to opportunity cost.
List and explain the different types of capital that can be used in production.
Define labor as a factor of production and discuss its importance in the economy.
Explain the difference between renewable and non-renewable resources and provide examples of each.
