ABBE1033 Lecture 1 Introduction

Which of the following is NOT considered a type of economic resource?

• Land
• Labor
• Capital
• Machinery

How does positive economics differ from normative economics?

• Positive economics is subjective, while normative economics is objective
• Positive economics describes what is, while normative economics prescribes what ought to be
• Positive economics focuses on microeconomics, while normative economics focuses on macroeconomics
• Positive economics deals with theoretical models, while normative economics deals with real-world data

Which of the following best describes microeconomics?

• The study of individual markets and consumer behavior
• The study of national economic trends
• The study of international trade
• The study of government fiscal policy

What is the primary concern of macroeconomics?

• Individual consumer choices
• The behavior of firms
• Aggregate economic phenomena
• The pricing of goods and services

Which concept explains the trade-offs between different goods that an economy can produce?

• Opportunity cost
• Comparative advantage
• Production Possibilities Frontier
• Supply and demand

What does the Production Possibilities Frontier (PPF) illustrate?

• The maximum possible output combinations of two goods
• The minimum resources needed for production
• The equilibrium price in a market
• The relationship between supply and demand

What does a point inside the Production Possibilities Frontier indicate?

• Efficient use of resources
• Underutilization of resources
• Overproduction of goods
• Optimal production

What type of resource refers to human effort, skills and knowledge in production?

• Land resources
• Capital resources
• Labor resources
• Entrepreneurial resources

What does the term 'ceteris paribus' mean in economic analysis?

• Everything changes
• Nothing matters
• All else being equal
• Cause and effect

Which of the following is an example of a normative economic statement?

• The unemployment rate is 5%
• Inflation reduces purchasing power
• The government should provide free healthcare
• GDP grew by 2% last quarter