Chemistry Multiple Choice Questions (MCQ) on Matter, Substance and Mixtures

The Economics subject taught at the secondary school level in Papua New Guinea is essential for developing students' understanding of how societies allocate limited resources to meet their needs and wants. It introduces key concepts such as demand and supply, opportunity cost, production, government policies, international trade, and national development. As a subject assessed in the national examinations, Economics helps students build critical thinking and decision-making skills that are relevant both in academic pathways and real-life economic situations. 

These multiple-choice questions are aligned with the national curriculum and serve as a valuable tool to help students revise core topics, prepare confidently for examinations, and appreciate the economic challenges and opportunities facing PNG today.

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1. What is the basic economic problem faced by all societies?

A. Too much government control
B. Lack of technology
C. Scarcity of resources
D. High levels of employment

2. Which of the following best defines opportunity cost?

A. The cost of all available options
B. The monetary price of an item
C. A benefit gained from a decision
D. The next best alternative foregone

3. What is the main function of money?

A. Medium of exchange
B. Source of energy
C. Tool for investment
D. Means of production

4. In a market economy, prices are mainly determined by:

A. The central bank
B. Supply and demand
C. Government policies
D. Workers' unions

5. What is inflation?

A. A general increase in prices
B. An increase in employment
C. A fall in the currency value
D. The total income of a country

6. Which of the following is a characteristic of a mixed economy?

A. Total government control
B. No private ownership
C. Combination of private and public sectors
D. Reliance on barter system

7. What does GDP stand for?

A. Gross Domestic Production
B. General Domestic Product
C. Gross Development Product
D. Gross Domestic Product

8. Which of the following is considered a capital resource?

A. Forest
B. Machinery
C. Labour
D. Water

9. Which statement is true about unemployment?

A. It leads to increased production
B. It decreases the labour force
C. It results in underutilization of resources
D. It has no impact on the economy

10. What is meant by demand?

A. The quantity of a good consumers are willing and able to buy
B. The amount of goods produced
C. Goods available in the warehouse
D. Price of the good in the market

11. Which of the following is a direct tax?

A. Value Added Tax (VAT)
B. Income Tax
C. Goods and Services Tax (GST)
D. Import Duty

12. What is specialization in economics?

A. Focusing on producing one type of good or service
B. Diversifying all production
C. Saving all national income
D. Reducing labor to increase profits

13. What is a subsidy?

A. A type of income tax
B. A penalty for overproduction
C. Financial assistance from the government to producers
D. Interest charged by banks

14. A budget deficit occurs when:

A. Exports exceed imports
B. Government revenue equals expenditure
C. National debt is reduced
D. Government spending is more than revenue

15. What is meant by consumer sovereignty?

A. Consumers determine what is produced
B. Government plans the economy
C. Producers set prices
D. Businesses control consumer behavior

16. What is the law of demand?

A. Demand rises as price rises
B. Demand falls as price rises
C. Supply creates its own demand
D. Consumers demand only necessary goods

17. Which of the following best describes capital in economics?

A. Money in the bank
B. Government savings
C. Man-made resources used in production
D. Land used for farming

18. What is a characteristic of public goods?

A. Can be sold in markets
B. Only benefits those who pay
C. Are excludable and rivalrous
D. Non-excludable and non-rivalrous

19. What does the term ‘market equilibrium’ mean?

A. Demand equals supply
B. Government controls all prices
C. No goods are sold
D. Producers set maximum prices

20. What role does the central bank play in an economy?

A. Collects household taxes
B. Controls the money supply and interest rates
C. Manages all supermarkets
D. Allocates jobs in the private sector

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Chemistry Multiple Choice Questions (MCQ) on Matter, Substance and Mixtures