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| 1 | |
What are the names of the factors of production? |
| | A) | Competition, cooperation, command, and custom |
| | B) | Labour, capital, land, and enterprise |
| | C) | Labour, capital, land, and money |
| | D) | Wages, interest, rents, and profits |
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| 2 | |
If 120 workers can produce 600 widgets in a day, what is the daily productivity per worker? |
| | A) | 120 |
| | B) | 5 |
| | C) | 72 000 |
| | D) | 600 |
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| 3 | |
Which of the following fall under the category of enterprise? |
| | A) | Adopting high-risk innovations |
| | B) | The organization and coordination of a business |
| | C) | The investigation and establishment of new markets |
| | D) | All of the above |
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| 4 | |
Which of the following is necessary for national income to be in equilibrium? |
| | A) | S + IM + T = I + X + G |
| | B) | S + IM + T = I + XN + G |
| | C) | C + I + G - XN = GDP |
| | D) | C + I + G - X = GDP |
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| 5 | |
Refer to Figure 3.6 to answer this question. What is flow 1? |
| | A) | Consumer goods and services |
| | B) | Factor services |
| | C) | Factor incomes |
| | D) | Investment |
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| 6 | |
Refer to Figure 3.6 to answer this question. What is flow 2? |
| | A) | Consumer goods and services |
| | B) | Factor services |
| | C) | Factor incomes |
| | D) | Investment |
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| 7 | |
Refer to Figure 3.6 to answer this question. What is flow 3? |
| | A) | Consumer goods and services |
| | B) | Factor services |
| | C) | Factor incomes |
| | D) | Investment |
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| 8 | |
Refer to Figure 3.6 to answer this question. What are flows 4 and 5, respectively? |
| | A) | Exports and imports |
| | B) | Exports and taxes |
| | C) | Savings and investment |
| | D) | Investment and savings |
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| 9 | |
All of the following, except one, are examples of the factor land. Which one is the exception? |
| | A) | Minerals |
| | B) | Natural harbours |
| | C) | Mortgages held on land |
| | D) | Supplies of fresh water |
| | E) | Fertile soil |
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| 10 | |
Which of the following is a valid description of economic growth? |
| | A) | It is an increase in an economy’s real GDP per capita. |
| | B) | It is an increase in an economy’s total output of goods and services. |
| | C) | It usually implies an increase in labour productivity. |
| | D) | All of the above. |
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| 11 | |
What does the sum of national income, indirect taxes, and depreciation equal? |
| | A) | Personal income |
| | B) | Disposable income |
| | C) | Gross domestic product |
| | D) | Gross national product |
| | E) | Net national product |
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