End of Term 1 2024

Organize these options into the right categories

Groups:

(a) Free Goods

,

(b) Economic Goods

• Car

• Cornflakes

• Computer

• Air

• Water

• Sunlight

• Music, once composed

Adam Smith, the godfather of Economics, believed in the power of the:​ (a)   ​ ​

• free market
• government
• producer
• engine

Show where a country would be in the strongest recession in its history:

Answer explanation

It would be where AD1 cuts Y1, on the left

How can we make GDP more accurate, put the measures most to least on the left to right:

• nominal GDP

• real GDP

• real GNI

• real GNI per capita

What is the meaning of "utility"?

• Utility measures the demand for a product based on its price.

• Utility measures how much usefulness or pleasure a consumer receives when they

  consume a product.

• Utility measures how unemployed people look for work.

• Utility is the second best alternative given up.

Which of these measure the "income" method of national income?

Which of these points shows actual output, in which some resources are not being used to their maximum?

The four factors of production are:

• All man made resources

• Capital

• All natural resources

• Labour

• All human resources

• Entrepreneurship

• Puts the factors together to produce

• Land

If we start at point 1, and AD lowers to create a recessionary deflationary gap, what represents point 3?

c

Long term final equilibrium point

Short term deflationary gap

Inflation level at the beginning

Organize these options into the right categories

Groups:

(a) Keynesian Ideas

,

(b) Classical Ideas

,

(c) 21st Century Ideas

,

(d) 19th Century Thinkers

• Behaviour Economics

• Govt Intervention

• Say's Law

• Circular Economy

• Self Correcting

• Sticky wages

• Free market

• Karl Marx

• Labour Reforms