Scheme of work for Economics, SS1, First Term

Costs generally treated as expenses in business are termed _____.

• A. Fixed cost

• B. Variable cost

• C. Sunk cost

• D. Direct cost

• E. Private cost

• F. Outlay cost

When an entrepreneur pays cash (money) for materials needed for production, such money is termed as an _____ cost.

• A. Accounting

• B. Entrepreneurship

• C. Economic

• D. Outlay

• E. Opportunity

• F. Incremental

A government mandated maximum price for goods or services is termed _____.

• A. Price height

• B. Price maxima

• C. Price ceiling

• D. Price level

• E. Price finale

• F. Price top-zone

The quantity of supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.

The above statement is attributed to the _____.

• A. Law of price increase and price decrease

• B. Law of product quantity

• C. Law of demand

• D. Law of supply

• E. Law of quantity demanded and supplied in relation to price

• F. Law of purchases on services and goods

The following statements are true concerning explicit opportunity cost except _____.

• A. They are recorded in the accounts book

• B. It is a type of cost

• C. They may also be referred to as 'out of pocket' cost

• D. They are utilized as factors of production

• E. Money spent on wages, salaries and raw materials are examples of explicit opportunity cost

• F. Explicit opportunity cost are always utilized for investment

Which of the following statement is incorrect concerning the table?

• A. Ipod is the least important need of the individual

• B. If the individual has 200,000 Naira at hand, then the laptop, iPad, smart watch and iPod will all be considered as opportunity cost

• C. If the individual has 480,000 Naira, he or she will purchase all the items in the table

• D. Console game is the most important need of the individual

• E. The table shows a scale of preference

• F. The individual needs an ipod

Which of the following statement is false concerning scale of preference?

• A. It is brought about by the insatiability of human wants

• B. It is brought about by the limitation of cash at hand

• C. It is a list of a person's needs or wants written in an order of importance

• D. Scale of preference cost is the value of the best alternative a person could have achieved but did not achieve it after the best choice had been made

• E. Opportunity cost is a term associated with scale of preference

• F. None of the above

Eonomies of scale in economics means _____.

• A. The prices of goods will remain the same because producers manufacture similar goods

• B. The prices of goods will fall because producers manufacture more goods

• C. The prices of goods will rise because producers manufacture less goods

• D. The prices of goods will rise and producers will manufacture more goods

• E. The prices of goods will fall and producers will manufacture less goods

• F. Equilibrium is achieved in the economy

The law of supply states that:

The quantity of the supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.

These constant factors are very important when stating the supply law. They include:

• The price of Input resources

• The kind of technology used during production

• The number of suppliers

• The number of buyers; and so on.

A graph that shows the relationship between the price of a product or service, and its quantity supplied is the supply curve.

Supply curve can be defined as a graphical representation of the direct relationship between the prices of goods and services and the quantity supplied (of such goods and services) within a particular period of time provided all other factors remain constant.

Please read more on the law of supply and supply curve here

Consider the table below:

The above table shows us what a scale of preference would look like.

A scale of preference can be defined as the list of a person's needs or wants written in an order of importance.

You will observe that the person puts his most important needs or wants at the top of the list. Further down the list are his less important needs.

Now, let's imagine that this individual has 170,000 Naira to spend. According to the above scale of preference, the followings can be deduced;

• A phone will be considered to be the most important; and it costs 50,000. He buys the phone.

• A console game according to this person is next in importance; and it costs 120,000. He buys the console game.

Another question worth asking is:

• What happens to his other needs?

This is where the term 'Opportinity Cost comes into play.

Please read more on scale of preference and opportunity cost here.

Scale of Preference can be defined as the list of a person's needs or wants written in an order of importance. 📜✍️

When you have a limited amount of money and could only buy some of the items on your list (the top items on the list); then the remaining items that you didn't buy will be generally considered as your opportunity cost.

Opportunity cost can be defined as the value of the best alternative that a person could have achieved or bought but couldn't achieve after the best choice had been achieved.

Opportunity cost are of two types. They are:

1. Explicit Opportunity Cost
2. Implicit Opportunity Cost

Please read on scale of Preference, Opportunity cost and the types of Opportunity cost here

Economics isn't just about money. It isn't just about economizing or efficiency or prudence at management.

In simple terms, Economics is a science that deals with the study of scarcity and choice.

Economics have 2 main branches. They are:

• Microeconomics
• Macroeconomics