5 Written Questions
5 Matching Questions
- economic good
- potential output
- economic development
- sustainable development
- a it is a broad concept involving improvement i standards of living, reduction in poverty, improved health and education.
- b the study of the behavior of individual consumers, firms, and industries and the determination of market prices and quantities of good, services, and the factors of production.
- c the possible production that would be possible in an economy if all available factors were being employed.
- d a good or services which is relatively scarce and so has a price. an opportunity cost is involved if it is consumed.
- e development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
5 Multiple Choice Questions
- the growth of real output in an economy over time. usually measured as growth in real GDP.
- this occurs when the quantity and/or quality of factors of production within an economy is increased. it is represented by an outward shift of the PPC.
- the study of aggregate economic activity. It investigates how the economy as a whole works.
- the physical factor of production. it consists of natural resources, some of which are renewable and some of which are non-renewable.
- an economy in the process of moving from a centrally planned economic system towards a more market-oriented economic system.
5 True/False Questions
human capital → the factor of production that comes from investment in physical capital and human capital.
free market economy → an economy where the means of production are privately held by individuals and firms, demand and supply determine how much to produce, how/how many to produce, and for whom to produce.
capital → the limited availability of economic resources relative to society's unlimited demand for goods and services.
ceteris paribus → all other things being held equal.
actual output → the actual production of goods and services in an economy in a given time period.