Test your understanding --Lecture 1

 Multiple choice questions

 (1) Factors of production are

1. the resources used to produce goods and services
2. the process used to produce goods and services
3. the places where goods and services are produced
4. the trade-offs involved in producing goods and services
5. the capital used to manufacture goods and services

(2) The knowledge and skills acquired by workers through education and experience are known as

1. natural resources
2. labor
3. physical capita
4. human capital
5. entrepreneurship

(3) We can say that a combination of goods and services possible if

1. it can be produced given the available factors of production
2. it can be consumed by the society within a given time period
3. all resources are fully employed
4. all factors of production are efficiently utilized
5. all of the above are true

(4) Which of the following is a microeconomic question

1. Is it sensible for the government to subsidize college education?
2. Why do some countries grow faster than others
3. What causes unemployment
4. Should Congress and the president take action to reduce the unemployment rate?
5. All of the above are microeconomic questions

(5) The production possibilities curve represents

1. the set of all combinations of goods and services possible in the economy
2. the set of all factors of production that can be used top produce goods and services
3. the set of all combinations of goods and services that can be utilized in production
4. the set of all efficiently-produced combinations of goods and services possible in the economy
5. the st of all nonlinear forms of production in the economy