Microeconomics 1

According to the chart, what do household exchange in the Product market for finished products?

• Consumption Expenditures

• Cost

• Goods and services

• Productive Resources

According to the chart above, what do businesses receive from the factor market?

• Goods and Services

• Finished Goods

• Income

• Factors of Production

According to the chart, what do businesses do with the productive resources they purchase?

• make finished goods and services and sell them in the product market

• make finished goods and services and sell them in the factor market

• make productive resources and sell them in the product market

• use them to gain a tax credit with the government

According to the chart, who makes income?

• Businesses

• Factor Markets

• Product Markets

• Households

According to the chart, how do households and businesses interact in the factor market?

• Households sell finished goods and services to businesses for money

• Households sell productive resources to businesses in exchange for income

• Households sell productive resources to businesses in exchange for expenses

• Households purchase finished goods from businesses in exchange for cost

According to the chart above, how do businesses and households interact in the product market?

• Businesses sell productive resources to house holds for income

• Businesses sell finished goods and services to the households for the factors of production

• Households purchase finished goods and services from the business for money that becomes is revenue for the businesses

• Households barter with businesses in exchange for a job to work.

What is the opportunity cost of moving from point A to point B?

• 50 of good X

• 35 of Good Y

• 50 of Good X and 35 of Good Y

• What ever is given up by point B

Which point on the curve is an efficient use of resources?

• F

• D

• E

• A

Which point on the curve shows impossible production possibilities?

• A

• D

• E

• F

An outward shift in the curve shows what?

• Economic Growth

• Less Production

• Less employment

• Full Employment