Name: ____________________________________________ Economics Grade 10 first term 2024

Section A

1 what is the basic economic problem faced by all societies

A Achieving happiness B an inefficient economic system C scarcity of resources

2 which product is most likely to be classified as a free good?

A birthday presents B seawater C public transportation

3 Which option is not an example of capital as a resource?

A Computers B Factory C Machinery D Natural resources

4 Which event is most likely to cause an increase in the average wage of labour?

A A decrease in the national minimum wage B An increase in the national minimum wage

C Government tax policies

5 Juke bought a new Xbox One games console for $295 but has never used it. The second-hand value of
his Xbox One is $195. What is the opportunity cost of Juke owning the games console?

A $0 B $100 C $195 D $295

6 What is the opportunity cost to the economy if the government decides to build a new motorway
(highway)?

A The cost of relocating and compensating residents in order to build the motorway

B The money spent on building the motorway

C The other projects that could have been undertaken had the motorway not been built

7 Study the diagram below, which shows the production possibility curve diagram for Country Y. It
produces only two products: wheat and barley.

If Country Y wishes to increase the production of wheat from W2 to W1, what is the opportunity cost?

A An increase in barley production from B1 to B2 B An outward shift of the PPC towards point E
C A reduction in barley production from B2 to B1

8 At which point is there spare capacity in the economy?

A Point C B Point D C Point E D Point F

9 Which of the following is most likely to cause an inwards shift of a country’s production possibility
curve?

A A natural disaster in the economy B An increase in the quantity of factors of production

A Economic growth B Monopoly and competition C Price elasticity of supply

11 Which option is not studied in macroeconomics?

A The consequences of a higher interest rate B The effects of a lower exchange rate

C The impacts of price changes in the market for smartphones

12 Which option is not a key economic question that is addressed by the market economy?

A For whom should production take place? B How should production take place?
C Why should production take place?

13 What is the law of demand?

A The assumption that both price and non-price factors affect the level of demand for a good or service

B The inverse relationship between the price of a good or service and the quantity demanded of that
product

C The positive relationship between the price of a good or service and the quantity demanded of that
product

14 What does a rightwards shift of the demand curve for a good or service show?

A A higher level of demand at all given price levels B A lower price charged for the product

C A reduction in the demand for the good or service

15 Study the demand and supply schedule below and answer the questions that follow.

At a price of $25, what situation does the market show?

A Market equilibrium B Excess supply C Excess demand

16 If the average price is $30 over a four-week period of trading, how much excess will suppliers
accumulate?

A 2000 units B 8000 units C 24,000 units D 32,000 units

Section B

1 What is meant by demand?

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2 What is the law of demand?

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3 What are the two reasons for the inverse relationship between price and quantity demanded?
Name: ____________________________________________ Economics Grade 10 first term 2024
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4 What are the main determinants of demand?

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5 How does a movement along a demand curve differ from a shift in the demand curve?

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6 What is meant by supply?

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7 Why is the supply curve upward sloping? Ggive two reasons

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8 What are the main determinants of supply?

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9 What is the law of supply?

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10 What is the price mechanism?

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11 What are the key features of the price mechanism?

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