CENTRAL PROB. , PPC HK

What are the basic economic activities of life?

• Production, exchange, and consumption of goods and services

• Farming, fishing, and hunting

• Education, healthcare, and transportation

• Buying, selling, and trading

What is the production possibility frontier?

• The maximum amount of goods and services that can be produced with limited resources

• The point where production is most efficient

• The total amount of resources available in an economy

• The combination of goods and services that individuals want to consume

What is the difference between positive and normative economics?

• Positive economics studies how the economy works, while normative economics evaluates what the economy should be

• Positive economics evaluates the economy, while normative economics studies how the economy works

• Positive economics focuses on microeconomics, while normative economics focuses on macroeconomics

• Positive economics focuses on macroeconomics, while normative economics focuses on microeconomics

What is the role of the government in a centrally planned economy?

• The government plans and controls all economic activities

• The government has no role in economic activities

• The government regulates the market but does not control economic activities

• The government only provides public goods and services

What is the main focus of microeconomics?

• The behavior of individual economic agents in markets

• The overall performance of the economy

• The distribution of wealth and income

• The determination of aggregate measures

What is the production possibility set of an economy?

• The collection of all possible combinations of goods and services that can be produced with limited resources

• The total amount of goods and services that an economy can produce

• The maximum amount of goods and services that an economy can produce

• The combination of goods and services that individuals want to consume

What is the market in economics?

• An institution where individuals freely exchange goods and services

• A physical location where buying and selling take place

• A government-controlled entity for economic activities

• A place where prices of goods and services are determined

What is the main focus of macroeconomics?

• The overall performance of the economy

• The behavior of individual economic agents in markets

• The distribution of wealth and income

• The determination of aggregate measures

What is the opportunity cost?

• The cost of having a little more of one good in terms of the amount of another good that has to be forgone

• The cost of producing one more unit of a good

• The cost of resources used in production

• The cost of goods and services in the market

What are the central problems of an economy?

• What to produce, how to produce, and for whom to produce

• How to produce, where to produce, and when to produce

• How much to produce, where to produce, and for whom to produce

• What to produce, where to produce, and when to produce