Resource

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. Because the resources are scarce, we must give up some of one good in order to acquire more of another. This is the concept of :

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a. opportunity costs

b. specialisation

c. comparative advantage

d. absolute advantage

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2. The opportunity cost of buying a drink is

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a. the money spent

b. the total benefit gained from consumption

c. the dollar value of all alternatives

d. the next best alternative use of the money spent

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3. Any point on the Production Possibility Frontier (PPF) is

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a. socially desirable

b. attainable and efficient

c. unattainable and efficient

d. unattainable without further investment

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4. Which of these causes an outward shift of the Production Possibility Frontier (PPF) for good X and Y

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a. an increase in production X

b. an increase in the amount of available labour and capital

c. transferring labour and capital from X production to Y production

d. both (a) and (c)

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5. Which of following will NOT cause change in demand for ice cream?

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a. a change in population size

b. a change in the price of ice cream

c. a change in seasons

d. a change in consumer incomes

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6. Which of the following would shift the supply curve for a product to the left?

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a. an increase in the price of resource used in the production

b. the price of a substitute good in production decreases

c. an...