CHAPTER 1 (TUTORIAL)

“How to produce” economic questions refer to

• Coercion in limiting people’s wants

• Determining the cheapest method of production

• Deciding on which goods and services to be forgone

• Choose the types and quantity of goods and services to be produced

The word economy comes from the Greek word for

• “one who ignores a household”

• “one who participates in a market”

• “one who is important to market”

• “one who manages a household”

Which of the following statements is the actual meaning of scarcity?

• When there is no resources

• When there is no change in the resources

• When there is a decrease in the resources

• When there is a shortage in the resources

Which of the following is the factors of PPC?

• Population sizes

• Opportunity cost

• Economic growth

• Advancement in technology

Society has to make a __________ due to limited resources available

• Scarcity

• Choice

• Services

• Production

A movement along the PPC implies that

• Productivity has increased

• Labour force has increased

• Improvement in technology and jobs

• Society has chosen a different set of output

___________ a study of how people use their limited resources to try to fulfil unlimited wants and involves alternatives or choices

• Economics

• Choice concept

• Macroeconomics

• Production possibilities curve

What concept that shows the various possible combinations of goods and services produced within a specified time period with all its resources fully and efficiently employed?

• Choice concept

• Economics

• Macroeconomics

• Production possibilities curve

Which fundamental economic questions refers to distribution of economic benefits

• How much product should be produced?

• For whom to produce?

• How to produce?

• What to produce?

Company is not able to produced products outside the PPC due to

• Opportunity cost

• Scarcity of resources

• Waste of financial resources