U1 AOS 3 Post Progress Check Revision

Question 1

What is the primary focus of positive economics?

Answer 1

Positive economics focuses on describing and explaining economic phenomena without making judgments.

Question 2

True or False: Normative economics is concerned with what ought to be.

Answer 2

True

Question 3

Fill in the blank: Positive economics deals with _____ statements, while normative economics deals with _____ statements.

Answer 3

descriptive; prescriptive

Question 4

Which of the following is an example of a normative economic statement? A) The unemployment rate is 5%. B) The government should increase the minimum wage.

Answer 4

B) The government should increase the minimum wage.

Question 5

What is the basic economic problem?

Answer 5

The basic economic problem is the scarcity of resources relative to human wants.

Question 6

Which of the following is a fundamental economic question? A) What to produce? B) How to produce? C) For whom to produce? D) All of the above.

Answer 6

D) All of the above.

Question 7

True or False: A Production Possibility Frontier (PPF) illustrates the maximum possible output combinations of two goods that can be produced with available resources.

Answer 7

True

Question 8

Fill in the blank: Efficiency in economics refers to the optimal use of resources to achieve the highest level of _____ and _____ possible.

Answer 8

output and welfare

Question 9

What does it mean if an economy is operating inside the PPF?

Answer 9

It means that the economy is not utilizing all of its resources efficiently.

Question 10

What are the three sectors in the flow of income model?

Answer 10

The three sectors are the household sector, the business sector, and the government sector.

Question 11

True or False: The government sector is responsible for providing public goods and services.

Answer 11

True

Question 12

Fill in the blank: In the flow of income model, households provide ______ to businesses in exchange for income.

Answer 12

factors of production

Question 13

Which sector generates income through the production of goods and services?

Answer 13

The business sector

Question 14

Multiple Choice: Which of the following is NOT a function of the government sector in the flow of income model? A) Taxation B) Regulation C) Production of consumer goods D) Public services

Answer 14

C) Production of consumer goods