MACRO ECONOMICS-C719 ACTUAL
2024-2025 EXAM; QUESTIONS AND
CORRECT ANSWERS LATEST
UPDATES PREMIUM GRADED A++
The value of the best alternative that is sacrificed to
obtain something you want is a/an
- Correct answer Opportunity cost
What is a graph that shows the various combinations of
choices an individual can make with the resources
available?
- Correct answer Choice curve
The assumption that all resources are alike will produce
a
- Correct answer straight line curve
A curved production possibilities curve (PPC) changes
the assumption that resources are
- Correct answer alike
,What explains how the production of larger amounts of
one good leads to an increase in the sacrifice of the
alternative good?
- Correct answer the law of increasing opportunity
costs
An outward shift of the production possibilities curve
(PPC) increases the economy's capacity to respond to
- Correct answer human wants
What is the most important assumption in economic
models?
- Correct answer ceteris paribus assumption
"all else being equal."
Economists assume people are
- Correct answer rational
This behavior consists of people trying to get the most
of something they want (to maximize some goal) out of
available resources
- Correct answer self-interested behavior
,The four factors of production are
- Correct answer land, labor, capital and
entrepreneurship
Plants, equipment, and machinery are examples of
- Correct answer capital resources
Capital increases only when
- Correct answer physical or human capital increases
What is entrepreneurship?
- Correct answer the activity of combining the other
productive resources to produce goods and services,
taking risks, and introducing new methods and new
products (innovation.)
What is profit?
- Correct answer the reward for innovation, risk
taking, and organization
What are the three basic economic questions?
, - Correct answer What to produce?
How to produce?
For whom to produce?
What are the three broad types of economies?
- Correct answer 1. Traditional economy
2. Command (or planned) economy
3. Market economy
Traditional economy
- Correct answer answers the basic economic
questions by tradition, or custom (Haiti banana farmers)
Command (or planned) economy
- Correct answer answers the basic economic
questions through central command and control (Soviet
Union, China, North Korea and Cuba)
Market economy
- Correct answer relies on incentives and the self-
interested behavior of individuals to direct production
and consumption through market exchanges (America)
2024-2025 EXAM; QUESTIONS AND
CORRECT ANSWERS LATEST
UPDATES PREMIUM GRADED A++
The value of the best alternative that is sacrificed to
obtain something you want is a/an
- Correct answer Opportunity cost
What is a graph that shows the various combinations of
choices an individual can make with the resources
available?
- Correct answer Choice curve
The assumption that all resources are alike will produce
a
- Correct answer straight line curve
A curved production possibilities curve (PPC) changes
the assumption that resources are
- Correct answer alike
,What explains how the production of larger amounts of
one good leads to an increase in the sacrifice of the
alternative good?
- Correct answer the law of increasing opportunity
costs
An outward shift of the production possibilities curve
(PPC) increases the economy's capacity to respond to
- Correct answer human wants
What is the most important assumption in economic
models?
- Correct answer ceteris paribus assumption
"all else being equal."
Economists assume people are
- Correct answer rational
This behavior consists of people trying to get the most
of something they want (to maximize some goal) out of
available resources
- Correct answer self-interested behavior
,The four factors of production are
- Correct answer land, labor, capital and
entrepreneurship
Plants, equipment, and machinery are examples of
- Correct answer capital resources
Capital increases only when
- Correct answer physical or human capital increases
What is entrepreneurship?
- Correct answer the activity of combining the other
productive resources to produce goods and services,
taking risks, and introducing new methods and new
products (innovation.)
What is profit?
- Correct answer the reward for innovation, risk
taking, and organization
What are the three basic economic questions?
, - Correct answer What to produce?
How to produce?
For whom to produce?
What are the three broad types of economies?
- Correct answer 1. Traditional economy
2. Command (or planned) economy
3. Market economy
Traditional economy
- Correct answer answers the basic economic
questions by tradition, or custom (Haiti banana farmers)
Command (or planned) economy
- Correct answer answers the basic economic
questions through central command and control (Soviet
Union, China, North Korea and Cuba)
Market economy
- Correct answer relies on incentives and the self-
interested behavior of individuals to direct production
and consumption through market exchanges (America)
