Business Economics
Practice 2026-VERSION
WITH QUALITY
QUESTIONS AND WELL
RATIFIED ANSWERS
100% CORRECT.
1. What does scarcity mean in
economics?
A. Unlimited resources
B. Limited resources and unlimited
wants
,C. Equal distribution of wealth
D. Government control
Answer: B
Scarcity refers to the fundamental
economic problem of having limited
resources to satisfy unlimited human
wants.
2. Opportunity cost is best defined as:
A. Money spent on goods
B. The next best alternative forgone
C. Total production cost
D. Fixed cost
Answer: B
Opportunity cost measures the value of
,the next best alternative sacrificed when
a decision is made.
3. A production possibility curve (PPC)
shows:
A. Demand levels
B. Maximum output combinations
C. Consumer income
D. Market prices
Answer: B
The PPC illustrates the maximum
possible combinations of goods that can
be produced with available resources.
, 4. Which factor of production includes
machinery?
A. Land
B. Labor
C. Capital
D. Enterprise
Answer: C
Capital refers to man-made tools and
machinery used in production.
5. Demand is defined as:
A. Desire for a product
B. Desire backed by ability to pay
C. Supply of goods
D. Government purchase
Practice 2026-VERSION
WITH QUALITY
QUESTIONS AND WELL
RATIFIED ANSWERS
100% CORRECT.
1. What does scarcity mean in
economics?
A. Unlimited resources
B. Limited resources and unlimited
wants
,C. Equal distribution of wealth
D. Government control
Answer: B
Scarcity refers to the fundamental
economic problem of having limited
resources to satisfy unlimited human
wants.
2. Opportunity cost is best defined as:
A. Money spent on goods
B. The next best alternative forgone
C. Total production cost
D. Fixed cost
Answer: B
Opportunity cost measures the value of
,the next best alternative sacrificed when
a decision is made.
3. A production possibility curve (PPC)
shows:
A. Demand levels
B. Maximum output combinations
C. Consumer income
D. Market prices
Answer: B
The PPC illustrates the maximum
possible combinations of goods that can
be produced with available resources.
, 4. Which factor of production includes
machinery?
A. Land
B. Labor
C. Capital
D. Enterprise
Answer: C
Capital refers to man-made tools and
machinery used in production.
5. Demand is defined as:
A. Desire for a product
B. Desire backed by ability to pay
C. Supply of goods
D. Government purchase
