Economics SS 2

1

2

Which of the following is a function of money?

(A) Medium of exchange  (B) Causing scarcity

(C) Reducing production  (D) Creating unemployment

(A) Medium of exchange

2

2

Mobility of labour is the:

(A) Movement of goods

(B) Ability of workers to change jobs or locations

(C) Transportation of machines

(D) Supply of labour

(B) Ability of workers to change jobs or locations

3

2

According to the law of supply, when price increases, quantity supplied tends to:

(A) Fall  (B) Remain unchanged

(C) Increase  (D) Disappear

(C) Increase

4

2

The economic system where the government controls most resources is called:

(A) Capitalism             (B) Socialism

(C) Mixed economy     (D) Trade system

 (B) Socialism

5

2

The place where employers and workers meet for employment is called the:

(A) Commodity market  (B) Labour market

(C) Capital market  (D) Stock market

(B) Labour market