11 ECB Practice Flashcard

Front

Which of the following lists best represents the resources used in the production of goods and services?
Options: Soil, workers, money and innovation, Land, human capital, factories and finance, Land, labour, capital and entrepreneurship, Equipment, wages, salaries and loans

Back

Land, labour, capital and entrepreneurship

Front

Which of the following equations best represents Gross Domestic Product in an open economy? Options: C + S + T + I, C + I + G + (X - M), C + G + S + T, C + I + G + (M-X)

Back

C + I + G + (X - M)

Front

The Latin term Ceteris Paribus is commonly used in economics to mean:

Back

All other variables are held constant

Front

The four returns for the factors of production are: Rent, salaries, interest, revenue; Rent, wages, interest, profit; Income, labour, rent, dividends; Profit, wages, income, capital

Back

Rent, wages, interest, profit

Front

In the circular flow model, if investment is $200, savings $150, exports $250, and government spending $300, what level of imports will ensure equilibrium?

Back

$600

Front

In the circular flow model, a leakage is best described as:

Back

A withdrawal of money from the economy's spending flow

Front

Which of the following is an injection into the circular flow of income? Paying taxes to the government, A household saving money in a bank account, A consumer buying groceries from a local shop, A business investing in new machinery

Back

A business investing in new machinery

Front

Which of the following best describes a point inside the Production Possibility Frontier (PPF)?
Options:
Resources are fully and efficiently employed
Resources are underutilised or not fully employed
The economy is producing beyond its current capacity
The opportunity cost of production is zero

Back

Resources are underutilised or not fully employed