Basic concepts of economics

The reward of labour is called:

• 1 Rent
• 2 Wages
• 3 Interest
• 4 Profit

The reward of land is called:

• 1 Interest
• 2 Wages
• 3 Profit
• 4 Rent

The reward of capital is called:

• 1 Wages
• 2 Interest
• 3 Profit
• 4 Rent

The reward of the entrepreneur is called:

• 1 Wages
• 2 Rent
• 3 Interest
• 4 Profit

Which of these is a service?

• 1 Teaching
• 2 Bread
• 3 A pen
• 4 A table

Scarcity means that:

• 1 Goods are free
• 2 Resources are limited in relation to wants
• 3 Wants are limited
• 4 There is plenty of everything

The value of the next best alternative that is given up is the:

• 1 Demand
• 2 Profit
• 3 Opportunity cost
• 4 Utility

According to the law of demand, when the price of a good rises, the quantity demanded:

• 1 Falls
• 2 Becomes infinite
• 3 Stays the same
• 4 Rises

Moving goods from a factory to a shop where they are needed creates:

• 1 Possession utility
• 2 Form utility
• 3 Time utility
• 4 Place utility

Which of these is a need?

• 1 Food
• 2 A luxury car
• 3 A gold watch
• 4 A new phone

The power of a good to satisfy a want is called:

• 1 Utility
• 2 Income
• 3 Scarcity
• 4 Cost

Which of these is a factor of production?

• 1 Advertising only
• 2 Money in the bank only
• 3 Land
• 4 A tax