B220 - Recap for Lesson 1 (2023)

​ ​ ​​ _______is the basic economic problem; because it exists, _______have to be made and thus ______​ ​ arises.

 ​

• Choice; costs; scarcity

• Scarcity; choices; opportunity costs

• opportunity costs, factors of production, allocation

• Opportunity cost; choices; scarcity

Which one of the following is NOT a factor of production?

• Fishes in the ocean

• Factory workers

• Ovens in a bakery

• Soft toys in a shop

Which one of the following points is unattainable?

• A

• C

• D

• E

Figure 1 below shows the production possibility frontier (PPF) of the Land of Oz.

Fill in the blanks by stating the opportunity costs of scooters for Land of Oz in moving from:

(a) Point B to point C: (a)   scooter(s)

Which of the following is TRUE about a mixed economy with government intervention and a market economy?

• A mixed economy with government intervention regulates monopolies while a market economy allows buyers and sellers to make all the economic decisions

• Both a mixed economy with government intervention and a market economy does not lead to better resource allocation

• A mixed economy with government intervention has a larger population while a market economy has a smaller population

• Both a mixed economy with government intervention and a market economy will lead to no economic growth

Identify the type of economic system that is illustrated in Figure 1

• Command economy

• Market economy

• Mixed economy

• Capitalist economy