End of Term 1 2024

Organize these options into the right categories

Groups:

(a) Free Goods

,

(b) Economic Goods

• Cornflakes

• Car

• Music, once composed

• Water

• Air

• Computer

• Sunlight

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:

• real GNI

• nominal GDP

• real GNI per capita

• real GDP

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 human resources

• Capital

• All natural resources

• Land

• Puts the factors together to produce

• Entrepreneurship

• All man made resources

• Labour

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

Inflation level at the beginning

Short term deflationary gap

Organize these options into the right categories

Groups:

(a) Keynesian Ideas

,

(b) Classical Ideas

,

(c) 21st Century Ideas

,

(d) 19th Century Thinkers

• Sticky wages

• Labour Reforms

• Self Correcting

• Govt Intervention

• Say's Law

• Karl Marx

• Circular Economy

• Free market

• Behaviour Economics