Foundations of economics

_______________is the situation in which available resources, or factors of production, are finite, whereas wants are infinite. There are not enough resources to produce everything that human beings need and want *

• Perfect competition

• Opportunity cost

• Social science

• Exploitation

• Scarcity

All economies must make choices on how to use their resources in order to produce goods and services. Goods and services can be produced by use of different combinations of factors of production (for example, relatively more human labour with fewer machines, or relatively more machines with less labour), by using different skill levels of labour, and by using different technologies. - Which concept? *

• For whom to produce

• How to produce

• What to produce

• All of the above

All economies must make choices about how the goods and services produced are to be distributed among the population. Should everyone get an equal amount of these? Should some people get more than others? Should some goods and services (such as education and healthcare services) be distributed more equally? Which concept?

• How to produce

• For whom to produce

• What to produce

• All of the above

All economies must choose what particular goods and services and what quantities of these they wish to produce.

• What to produce

• For whom to produce

• How to produce

• All of the above

If a decision is made to change the amounts of goods produced, such as more food and fewer weapons, this involves a _______________ of resources

• Reallocation

• Repatriation

• Redistribution

• Deregulation

• Reassessment

__________, or the value of the next best alternative that must be sacrificed to obtain something else, is central to the economic perspective of the world, and results from scarcity that forces choices to be made.

• Abnormal profit

• Implicit cost

• Opportunity cost

• Total cost

• Land

Identify the impossible position under 'autarky'?

• A

• E

• F

• G

• A, B, C, D, E

Ceteris paribus is ________________

• an explanation

• a conditioning

• an assumption

• allocative efficiency

• an air-conditioner

The unemployment rate is 5%; industrial output grew by 3% - is ________________

• A normative statement

• A political statement

• A negative statement

• A positive statement

• An yielding statement

Government intervention does NOT include provisions for:

• Education

• Parks

• Defence

• Weather forecasts

• Income distribution