5 Written Questions
5 Matching Questions
- positive economics
- transition economy
- economic growth
- a an economy in the process of moving from a centrally planned economic system towards a more market-oriented economic system.
- b matters if economics that can be proven to be right or wrong by looking at the facts.
- c the growth of real output in an economy over time. usually measured as growth in real GDP.
- d the human factor of production. it is the physical and mental contribution of the existing work force to production.
- e the limited availability of economic resources relative to society's unlimited demand for goods and services.
5 Multiple Choice Questions
- the value of the workforce
- all other things being held equal.
- the possible production that would be possible in an economy if all available factors were being employed.
- 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.
- the study of aggregate economic activity. It investigates how the economy as a whole works.
5 True/False Questions
capital → the factor of production that comes from investment in physical capital and human capital.
utility → the limited availability of economic resources relative to society's unlimited demand for goods and services.
economic good → a good or services which is relatively scarce and so has a price. an opportunity cost is involved if it is consumed.
entrepreneurship → goods or services which are unlimited in supply and have no opportunity cost are free goods. a free food has an unlimited supply ad market price zero.
land → the physical factor of production. it consists of natural resources, some of which are renewable and some of which are non-renewable.