ACP Review 1-2024

Front

What is opportunity cost?

Back

The value of the next best alternative when a decision is made

Front

The metaphor of Invisible hand used by classical economist Adam Smith suggests that:

Back

self-interest of economic players acts as an unseen force which help decide the demand and supply of goods and services and satisfying everyone.

Front

Keynesian economics named after famous economist John Maynard Keynes says that during recession, government should increase spending on unemployment benefits, education and infrastructure projects to increase demand jump start the economy.

Back

during recession, government should increase spending on unemployment benefits, education and infrastructure projects to increase demand jump start the economy.

Front

What does point Y represent on the given Production Possibilities Curve (PPC)?

Back

Unattainable (Impossible) given current resources

Front

In this Production Possibilities Curve/Frontier points A, B, C represent?

Back

Productive efficiency (Full employment of resources)

Front

In the given PPC, which point(s) represent(s) "resources are not being used efficiently, or underutilization or underproduction"? Options: Point A, Point Y, Point X, All of the above

Back

Point X

Front

The 4 Factors of Production (FOP) are

Back

Land, Labor, Capital, Entrepreneurship

Front

An assembly line at a factory, a cash register at a restaurant and tools used by a plumbing company are all examples of which factor of production?

Back

Capital

Front

Economics is defined as

Back

The study of how individuals, firms and governments make choices to efficiently use limited resources to satisfy unlimited wants/needs

Front

The three Economic questions every society face are: How to produce? Who gets to use the products? How much is the unemployment rate? What to Produce? How much unemployment should we have? How much money should we have? How much money should we have? How much population show we have? How much unemployment should we have? What to Produce? How to Produce? For Whom to Produce?

Back

What to Produce? How to Produce? For Whom to Produce?