Take this Exam: A-Level Economics: Scarcity, Choice and Opportunity Cost | Zestly

Question 1

In the context of the division of labour, which of the following are potential disadvantages for a firm?

Accepted Answer

Increased worker boredom and alienation.

Question 2

If an economy is currently producing at a point inside its production possibility frontier, what does this imply?

Accepted Answer

The economy is suffering from productive inefficiency.

Question 3

Which of the following are considered 'factors of production'?

Accepted Answer

Land (natural resources).

Question 4

A movement along the production possibility frontier from one point to another signifies:

Answer

An increase in the total amount of resources available.

Answer

A change in the state of technology.

Answer

An improvement in the efficiency of the economy.

Answer

A reallocation of resources from one good to another.

Question 5

If a country has a concave (bowed-out) production possibility frontier, what does this indicate about the opportunity cost of production?

Answer

The opportunity cost is constant.

Answer

The opportunity cost is increasing.

Answer

The opportunity cost is decreasing.

Answer

The opportunity cost is zero.