Student Number Class
Full name
English and Chinese
Teacher’s name
Sep. 2025 – Section 1 Test
Grade 9 IG Economics
Instructions:
Answer ALL the questions in Section A and Section B.
Do not use staples, paper clips, glue or correction fluid.
Calculators allowed.
Write in dark blue or black pen. Pencil in diagram drawing is acceptable.
Duration: 40 min
Total Marks /27
Section A Multiple choice questions (15 marks)
1. Which combination of resources and wants causes the economic problem?
Resources Wants
A Limited Limited
B Limited Unlimited
C Unlimited Limited
D Unlimited Unlimited
2. What does an economist mean by capital?
A. man-made goods that do not directly satisfy human wants
B. money used to set up new businesses and expand existing businesses
C. natural resources that will not be replaced
D. the ability to earn profits by combining resources to produce goods
3. A student leaves school and decides to spend the next two years at a college to
improve her qualifications. What is the opportunity cost to the student of taking this
decision?
A. the cost of the course fees at the college
B. the increase in job opportunities she will have as a result of her extra
qualifications
C. the lost production due to her not being in work
D. the money she would have earned if she had been in work for the two years
4. Economics is primarily concerned with:
A. Allocating scarce resources for unlimited wants.
B. Controlling unemployment and inflation.
C. Determining the level of government expenditure.
D. studying how new wants and economic resources can be produced.
5. Which statement about the factors of production is correct?
A. Capital includes factories and machinery but not roads and ports.
B. Enterprise is more often found in the public sector rather than the private sector.
C. Labour is the factor that takes risks and can become unemployed.
D. Land is the natural factor that can be improved by human action.
6. The diagram shows a production possibility curve for digital televisions and CD
players.
Which movement shows an increase in the use of existing resources to increase
production for both digital televisions and CD players?
A. X to W B. X to Z C. Z to W D. Z to Y
7. Which group linked to a firm always bears the risk of the decision to produce?
A. creditors
B. managers
C. owners
D. workers
8. Why will the economic problem never be solved?
A. People will always want more products than can be produced.
B. People will never agree on what is the best economic system.
C. There will always be an uneven distribution of income.
D. There will always be some people unemployed.
9. A country is producing at point X on its production possibility curve which shows
how it can allocate its production between capital goods and consumer goods. A
period of recession then causes unemployment. Which point could represent the
country’s new position?
10. Reena makes a living by selling paintings of the town in which she lives. She
sells them in an open-air market once a week. In order to be able to sell more
pictures in a week she decides to buy a studio, pay someone to help in the studio
and try to increase demand by advertising in the local paper. Which factors of
production were changed?
A. capital and enterprise
B. enterprise and labour
C. labour and capital
D. labour only
11. A power station was built to provide electricity to rural villages in Namibia. What
was its opportunity cost?
A. the cost of producing the electricity
B. the school which could have been built instead
C. the time given up by the architect to design the power station
D. the wages of the workers who built the power station
12. What is most likely to reduce the supply of factors of production in an economy?
A. increasing the age of retirement
B. introducing new methods of irrigation
C. lowering the cost of borrowing from banks
D. raising the rate of tax on profits
13. What is a factor of production?
A. a semi-skilled, young worker
B. taxes received by a government
C. shares in a manufacturing company
D. savings held a bank
14. With a given level of resources, an economy that can produce food or
computers is at point Q on its production possibility curve. Population growth means
more resources need to be allocated to food production. At which point in the short
term will the economy be in the diagram?
15. The diagram shows two production possibility curves for an economy.
What could have caused the change in the economy’s production possibility curve
from XX to YY?
A. a decrease in the price level
B. a large number of industrial disputes
C. a major earthquake
D. an increase in unemployment
Section B Structured question (14 marks)
1. Identify the reward received by labour and enterprise. (2)
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3. Explain why government spending on healthcare involves an opportunity cost.
(4)
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4. Using a production possibility curve diagram, analyse the effect on an economy
when there is improvement in technology. (6)
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Diagram:
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