Lesson 1.1.1

1.1.1 The economic problem, scarcity and choice Quiz: OCR Economics, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 1.1.1, The economic problem, scarcity and choice: 20 multiple choice questions for the OCR Economics (H460), Unit 1: Introduction to Microeconomics, written with Revision Ninja.

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The 20 questions

  1. What causes the fundamental economic problem facing all societies?

    • Excessive tax rates
    • Scarcity of resources
    • High consumer inflation
    • Unregulated market monopolies

  2. Which factor of production encompasses all naturally occurring resources?

    • Capital
    • Enterprise
    • Land
    • Labour

  3. What is the financial reward earned by owners of capital?

    • Wages
    • Rent
    • Profit
    • Interest

  4. What term describes the value of the next best alternative foregone?

    • Opportunity cost
    • Fixed cost
    • Marginal cost
    • Sunk cost

  5. Which economic agents are assumed to aim to maximise personal utility?

    • Firms
    • Consumers
    • Governments
    • Workers

  6. What term describes a resource that regenerates naturally over time?

    • Free good
    • Non-renewable resource
    • Renewable resource
    • Capital good

  7. What is the economic reward earned by entrepreneurs taking financial risks?

    • Profit
    • Wages
    • Rent
    • Interest

  8. What term describes goods with zero opportunity cost in consumption?

    • Merit goods
    • Economic goods
    • Public goods
    • Free goods

  9. A farmer grows wheat instead of barley. What is the opportunity cost?

    • The crop price
    • The seed cost
    • The wheat harvested
    • The barley foregone

  10. A student spends £10 on a ticket instead of a textbook. What is the opportunity cost?

    • The textbook benefit
    • The £10 price
    • The transport fare
    • The ticket cost

  11. A shoe manufacturer buys new factory machinery. Which factor of production is this?

    • Capital
    • Labour
    • Enterprise
    • Land

  12. How does investing in capital goods today affect future production capacity?

    • Eliminates scarcity entirely
    • Reduces future capacity
    • Increases future capacity
    • Has zero impact

  13. An economy produces either 100 cars or 200 bicycles. What is the opportunity cost of one car?

    • 2 bicycles
    • 100 bicycles
    • 0.5 bicycles
    • 200 bicycles

  14. An engineer leaves a £30,000 job to start a company. What is the opportunity cost of labour?

    • Zero opportunity cost
    • The business profits
    • The £30,000 salary
    • The start-up expenses

  15. Crude oil deposits in the ground are classified as which type of resource?

    • Renewable resource
    • Capital resource
    • Non-renewable resource
    • Free good

  16. A software developer coding for a tech firm represents which factor of production?

    • Land
    • Capital
    • Labour
    • Enterprise

  17. What condition is shown by a production point inside a Production Possibility Frontier?

    • Unattainable production
    • Economic growth
    • Productive inefficiency
    • Productive efficiency

  18. Why is a Production Possibility Frontier typically concave to the origin?

    • Perfect factor mobility
    • Constant opportunity costs
    • Imperfect factor substitutability
    • Infinite productive resources

  19. What concept is shown by moving along a fixed Production Possibility Frontier?

    • Economic growth
    • Opportunity cost
    • Dynamic efficiency
    • Resource discovery

  20. What causes a parallel outward shift of a Production Possibility Frontier?

    • Decreased consumer demand
    • Resource reallocation
    • Increased resource quantity
    • Falling inflation rates

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