Question

1.The sister disciplines of economics as a field of study are:

Management, marketing, and accounting

Sociology, anthropology, psychology, and geography

Biology, chemistry, and physics

Engineering and exercise science

2.In the circular flow model of an economy, which of the following were identified as primary institutions in society?

Governments

Schools

Hospitals

All of the above

3.Which of the following constrain a nation’s capacity to produce?

Natural resource, or land endowment

Size and quality of the labor force (number of workers and their human capital)

Quality of the tools and equipment that workers use (physical capital)

The available technology

All of the above

4.What explains the “bowed out” shape of the production possibilities curve above?

Specialized labor and capital with some better suited for fish production and others for bread production

Nonspecialized resources where all units of labor and capital are equally suited for bread and fish production

The shape of the production possibilities curve has no meaningful economic interpretation so the shape is irrelevant

None of the above

5.Which of the following is a likely explanation for inefficient production combinations?

There are idle resources such as labor and capital not being put to production uses

There is an inefficient allocation of resources with some labor and capital allocated to fish production that would be better suited for bread production

Both A and B are likely explanations

Neither A nor B is a likely explanation

6.Which of the following is a measure of a country’s productive capacity relative to another country?

Absolute advantage

Comparative advantage

Opportunity cost

Gains from trade

7.Which of the following concepts relates the relative cost of producing a good in one country with the relative cost of producing the same good in another country?

Absolute advantage

Comparative advantage

Opportunity cost

Gains from trade

8.Opportunity cost is

A measure of what you give up to get something else

Measured as the slope of the production possibilities curve

Reflected in a nation’s absolute advantage in production

All of the above

Only A and B are a reflection of opportunity cost

Answer 1

Ans)
1.
Management, marketing, and accounting
The sister disciplines of economics as a field of study are management, marketing, and accounting
2.
Governments
In the circular flow model of an economy, the primary institutions are Government, Households and Private sector.
3.
All of the above
All of the above factors affect the nation's capacity to produce.
4.
Specialized labor and capital with some better suited for fish production and others for bread production
The “bowed out” shape of the production possibilities curve is due to the law of the increasing opportunity costs.