Scarcity, choice and resource allocation quiz (Singapore O-Level Economics 2286) quiz

Inflation rising faster than wages

Unlimited wants meeting limited resources, which forces choice

Governments spending more than they collect in tax

Firms failing to make a profit

The money price paid for a good

The total cost of running a government

The value of the next best alternative forgone when a choice is made

The interest charged on a loan

The $5 a student pays for a meal

The price of a textbook before a discount

The total money a student has saved

The extra study time a student gives up to take a part-time job

What to produce, how to produce, and for whom to produce

When, where and why to produce

How much to tax, spend and borrow

Whether to import, export or stockpile

Land

Labour

Capital

Enterprise

Money in a bank account

The owner's personal wealth

Man-made aids to production such as machines, tools and factories

Natural resources such as oil and minerals

Land

Labour

Capital

Enterprise

Unemployed or inefficiently used resources, so more of both goods could be made

An efficient use of all resources

A level of output the economy can never reach

Economic growth has occurred

A movement along the curve

Economic growth, an increase in the economy's productive capacity

Rising unemployment

A fall in the general price level

Because resources are equally suited to producing both goods

Because the economy is using resources inefficiently

Because opportunity cost increases as more of one good is produced, since resources are not equally suited to both

Because prices are rising

The government through central planning

International organisations

A committee of state officials

Private buyers and sellers through the price mechanism

A mixed economy where markets allocate most resources and the government intervenes where needed

A pure market economy with no government role

A pure planned economy with no private firms

A subsistence economy

It always responds quickly to changes in consumer wants

Central planners may lack the information and incentives to allocate resources efficiently, causing shortages or surpluses

It guarantees that firms maximise profit

It removes the need to answer the basic economic questions

Because they are always expensive to buy

Because the government rations them

Because they are limited in supply relative to the unlimited wants they could be used to satisfy

Because they are difficult to transport

Economic growth

A fall in productive capacity

Unemployment of resources

The opportunity cost of more healthcare is the education given up