Unit 1: Multiple choice quiz

 

1. What is the basic economic problem?

 

2. What is opportunity cost?

 

 

3. What are the four factors of production?

 

 

 

4. The construction of a new highway is an example of an increase in an economy’s:

 

 

 

5. One of the basic economic questions is:

 

 

6. A potential opportunity cost of attending university after completion of the IB diploma for most students might be:

 

 

7. What is a free good?

 

 

8. Which of the following is a positive economic statement?

 

9. Economics is the study of:

 

10. A resource is scarce if supply exceeds demand at zero price. This statement is:

 

11. Which of the following would be considered a rational decision by an economist?

 

12. Economic concepts and theories are expressed with the assumption of:

 

13. In economics, models are:

 

14. Which of the following is a central theme used to study economics in the IBDP?

 

15. Which of the following goods is likely to have the greatest rate of diminishing utility:

 

16. Scarcity is the concept that:

 

17. Who is considered the founder of modern economics?

 

18. Use the diagram below to answer the questions 18-20

Point G is ________

 

 

 

 

 

 

 

 

 

19. Use the diagram to answer the question. Point B is _________

 

20. Use the diagram to answer the question.  Point F is __________

 

Total Score:

Available as a PDF file at: Introduction to economics

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