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Grade: 08
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Date:
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Class:
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Index:
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Name:
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1.
The income earned by the factor of production, ‘enterprise’ is
a) interest
b) profit
c) rent
d) wages or salaries
2. The resources used by countries to
produce goods and services are called
a)
Factors of production
b)
Sectors of production
c)
Production
d)
Productivity
3.
Why human wants are virtually unlimited?
a)
Repeated use of goods make us bored
b)
New goods did not become available
c)
Resources are also unlimited
d)
Scarcity is not a true problem
4.
Which of the following best describes ‘land’?
a)
All natural resources
b)
The physical and mental
work of people
c)
All man-made tools and
machines
d)
All managers and
organizers
5. The reward paid to the owners of money and capital is
a)
Rent
b)
Interest
c)
Profit
d)
Wages
6. The USSR North Korea
a)
Command economy
b)
Market economy
c)
Mixed economy
d)
Laissez fair economy
7. A gardener decides to grow carrots on
his allotment, so that, no potato is now grown. What is the opportunity cost of
this action?
a)
Potato he has foregone
b)
Cost of cultivating carrot
c)
Selling price of carrot
d)
Profit for the gardener
8.
Thirty students of our class went to the canteen to buy Coke and Biscuits. But
at that time only 25 bottles of Coke were available. This means that:
a)
Coke was scarce
b)
all of them bought Coke
c)
all of them bought Coke and
Biscuits
d)
Coke was available but not
tasty
9. A carpenter cuts down trees for hardwood
timber. What is the opportunity cost of this to the society?
a)
The forest that is destroyed
b)
The cost of tables made
c)
The depreciation of table making
factory
d)
Cost of advertising tables
10. The way by which a country solves its
economic problems are called
a)
Economic system
b)
Economic questions
c)
Economic problem
d)
Economic goods
11. Equal distribution of income and wealth
is one advantage of
a)
Command economy
b)
Market economy
c)
Mixed economy
d)
Traditional economy
12.
One argument in favour of the free market economy is
a)
it allows government
interventions in industries
b)
it results in the full
employment of labour
c)
it ensures freedom of choice
for producers
d)
it distributes income and
wealth more equally
13.
Public health is provided by the government because it is
a)
under-provided by the market
b) low-priced
c)
not provided by the market
d) durable in nature
14.
A free market economy is characterized by
a)
more government intervention
b) more freedom of choice
c)
no consumer sovereignty
d) no private property right
15.
In a mixed economy, what determines the allocation of resources?
a)
central authorities only
b)
central authorities and
firms only
c)
central authorities, firms
and consumers
d)
consumers only
