5 Written Questions
5 Matching Questions
- economic growth
- human capital
- production possible curve
- opportunity cost
- free market economy
- a 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.
- b the value of the workforce
- c it shows the maximum combinations of goods or services that can be produced by an economy in a given time period, if all the resources in the economy are being used fully and efficiently and the state of technology is fixed.
- d the growth of real output in an economy over time. usually measured as growth in real GDP.
- e it is the next best alternative forgone when an economic decision is made.
5 Multiple Choice Questions
- an economy in the process of moving from a centrally planned economic system towards a more market-oriented economic system.
- this occurs when previously unemployed factors of production are brought in to use. it is represented by a movement from a point within a PPC to a new point nearer to the PPC.
- the actual production of goods and services in an economy in a given time period.
- the study of aggregate economic activity. It investigates how the economy as a whole works.
- an economy where the means of production are collectively owned. the state determines how much to produce, how/how many to produce, and for whom to produce.
5 True/False Questions
capital → the factor of production that comes from investment in physical capital and human capital.
microeconomics → the study of aggregate economic activity. It investigates how the economy as a whole works.
land → the physical factor of production. it consists of natural resources, some of which are renewable and some of which are non-renewable.
free good → a good or services which is relatively scarce and so has a price. an opportunity cost is involved if it is consumed.
potential output → the possible production that would be possible in an economy if all available factors were being employed.