5 Written Questions
5 Matching Questions
- economic good
- physical capital
- free market economy
- a the factor of production that comes from investment in physical capital and human capital.
- b 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.
- c the human factor of production. it is the physical and mental contribution of the existing work force to production.
- d the stock of manufactured resources.
- e a good or services which is relatively scarce and so has a price. an opportunity cost is involved if it is consumed.
5 Multiple Choice Questions
- the actual production of goods and services in an economy in a given time period.
- the possible production that would be possible in an economy if all available factors were being employed.
- 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.
- the physical factor of production. it consists of natural resources, some of which are renewable and some of which are non-renewable.
- 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.
5 True/False Questions
sustainable development → it is a broad concept involving improvement i standards of living, reduction in poverty, improved health and education.
planned economy → 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.
positive economics → matters if economics that can be proven to be right or wrong by looking at the facts.
macroeconomics → the study of aggregate economic activity. It investigates how the economy as a whole works.
human capital → the value of the workforce