Section A: Multiple choice questions. Underline the most suitable answer (10 marks)
1. Which of the following is not a need?
a. cars
b. water
c. shelter
2. Tom was given €400 as a birthday present. He decided to buy an xbox. With the money he could have also bought an iphone, which he extremely wants, or a laptop. The opportunity cost of the choice was the:
a. €400
b. iphone
c. iphone and laptop
3. Payment to the owners of land is:
a. wage
b. rent
c. profit
4. Direct production takes place when:
a. there is specialisation
b. people are self-sufficient
c. there is exchange
5. Business activities should aim to
a. Satisfy people’s needs and wants and earn profit for business owners
b. Cheat the government in favour of business owners
c. Make business owners rich in a very short period of time.
6. Which stage of production is concerned with the extraction of raw materials and natural resources?
a. Primary
b. Secondary
c. Tertiary
7. Which of the following is a commercial service?
a. Entertainment
b. Healthcare
c. Transport of goods.
8. Which of the following are part of the liquid capital of a baker?
a. Flour and Bread
b. Flour and Mixing bowls
c. Mixing bowls and wooden spoons.
9. Production is that economic activity which:
a. Makes use of machinery
b. Provides goods only
c. Provides goods and services
10. Another name for tertiary production
a. The extractive industry
b. The manufacturing and constructive industry
c. Service industry.
Section B: Fill in the blanks with the words provided: (10 marks)
Needs / Given up / Limited
Free / Choices / Satisfaction
Opportunity cost
Human beings have ______and wants. Human beings’ wants are ______but resources needed to produce them are ______. ______is the basic economic problem that each country, society or individual must face. Since we cannot have everything we want, we are forced to make ______. Choices are based on our ______. This means that we decide on the basis of what gives us the
most ______.When we make a choice, something has to be ______. The ______of a choice is what economists call a real cost. A ______good is a good with zero opportunity cost.
Section C: Classify the following workers into Primary, Secondary and Tertiary workers by making a tick ( √ ) in the correct appropriate column:
(5 marks)
Primary / Secondary / Tertiaryi. Baby-sitter
ii. Taxi driver
iii. Shopkeeper
iv. Chocolate factory worker
v. Fisherman
5 marks
Section D: [10 marks]
Match the following terms by writing down the appropriate number in the middle column.
One is already done for you.
1. / Business / Man-made resources2. / Non-durable goods / Non-physical products
3. / Labour / Food, paper napkins and detergents
4. / Land / Someone who buys and uses goods and services
5. / Consumer / A reason for business activity
6. / Goods / Natural Resources
7. / Durable goods / Physical products - such as burgers or cars
8. / Capital / Decision takers and risk bearers
9. / Services / Machinery and factory building
10. / Profit / 1 / Any organisation that produces or supplies products.
11. / Entrepreneurs / Human Resources
10 marks
Section E: Classify the following by making a tick ( √ ) in the correct appropriate column: (5 marks)
Capital good / Consumer good / Business service / Consumer servicei. An air conditioner at home
ii. An air conditioner in an office
iii. Advertising agency conducting an advertising campaign to help a firm launch a new product.
iv. Family doctor
v. A hairdresser’s hair dryer
5 marks
Section F: State whether the following statements are true or false by making a tick ( √ ) in the correct appropriate column: (5 marks)
True / False1) / Malta has a planned economy
2) / In a planned economy consumers have a wide
range of products to choose from.
3) / In a planned economy goods and services are
produced to satisfy the needs of all the
citizens of a country.
4) / In a market economy competition pushes firms to keep
prices down and to offer consumers good
quality products.
5) / In a market economy there are often great inequalities
in the distribution of income and wealth between rich
and poor
5 marks
Section G: Read the following, and answer the questions: (15 marks)
Susan Borg is planning to open a hair salon business in Sta Venera. She will be offering hair care service to all type of clients.
1. 2. / What is a business owned and managed by one person called?______/ 1 mark
2. / One main disadvantage of being a sole trader is that Susan has unlimited liability. Why should she be worried about this?
______/ 2 marks
3. / Mention two advantages of being a sole trader: ______/ 4 marks
4. / Mention two advantages that Susan would benefit from forming a partnernship with her friend Claire who is also a hairdresser. ______/ 4 marks
5. / What is a general partnership? ______/ 2 marks
6. / What is a sleeping partner?
______/ 2 marks
Section H: Read the following, and answer the questions: (20 marks)
A barter system is an old method of exchange. This system has been used for centuries and long before money was invented.
1. ?. / What is meant by the barter system?______/ 2 marks
2. 2. / List and briefly explain three problems of this system?
______
______/ 6 marks
3. / List and explain three functions of money?
______
______/ 6 marks
4. / State four qualities that anything used as money should have.
______/ 4 marks
What is meant by ‘legal tender’?
______/ 2 marks
Section I: Look at the following diagram and answer the questions below: (20 marks)
1. . / What is the above chart called? ______/ 1 mark
2. / What is a span of control of the Sales Manager South Region?
______/ 1 mark
3. / To whom is the Financial Accountant responsible?
______/ 1 mark
4. / For whom is the Financial Accountant responsible? ______/ 1 mark
5. / Who is the line manager of the Shift Leaders?
______/ 1 mark
6. / What is meant by the word delegation? Mention a reason why some managers do not like to delegate tasks to subordinates and sometimes end up unable to cope with their work load.
______/ 4 marks
7. / To whom does the Financial Accountant delegate work? ______/ 1 mark
8. / Explain the term delayering?
______
______/ 1 mark
9. / Mention a disadvantage of having a tall organisation chart.
______
______/ 2 marks
10. / Instead of all decisions being made at the centre (e.g. Head Office) of an organisation, they are made throughout the organisation.
a. / What do you call this situation? ______/ 1 mark
2 marks
b. / Mention a disadvantage to the business when the Board of Directors is making most of the decisions: ______
______
______
11. / A business is normally organised in different departments. Say which department has the following responsibilities:
a. / Ensuring that the business has enough funds to pay debts as they fall due. ______/ 4 marks
b. / Changing the raw materials into finished or part of a finished good.
c. / Understanding the needs and wants of customers: ______
d. / Employing people with the necessary skills: ______
End of Paper
Office use only:
Sections / MarksA / 10
B / 10
C / 5
D / 10
E / 5
F / 5
G / 15
H / 20
I / 20
Total / 100
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