1) Which of the following options is correct?

Division of labor is not working without trade

Division of labor is not working without prodactive efficiency

Division of labor is not working without scarcity

Division of labor is not working without choice

2) Which one is correct?

The choice is a result of scarcity

Trade is a result of comparative advantage

Specialization is a result of labor division

All of them

3) In a market economy, the problems of what products, how to produce, and for whom are solved by:

a planning committee

the elected representatives of the people

invisible hand

by the firms

4) Which of the following is incorrect?

Microeconomics is concerned primarily with the problem of what, how, and for whom to produce.

Microeconomics is concerned primarily with the economic behavior of individual decision-making units

Microeconomics is concerned primarily with the economic issues at the national level

Microeconomics is concerned primarily with the normative economics

5) A production possibility curve shows:

the total value of all goods and services produced in the economy.

all acceptable ways of producing goods and services.

the boundary between combinations of goods and services that are attainable through production and those that are unattainable.

all combinations of goods and services consumed in the economy.

6. Which of the following statements is true?

Households sell and firms buy goods and services in the product market.

Firms sell and households buy goods and services in the product market.

Firms sell and households buy goods and services in the production factor market.

None of the above.

7. According to the price mechanism, if the current price of a good is less than the equilibrium price, there will be

a shortage of the good and its price will decrease.

a shortage of the good and its price will increase

a surplus of the good and its price will increase.

a surplus of the good and its price will decrease.

8. Which one is not related to macroeconomics?

The rate of unemployment

a firm decision to expand

The level of national production

The inflation rate

9. A monetary policy manages by ..... and is related to the changes in the .....

The Central Bank---government spending and taxes

The government---supply of money and the interest rates

The Central Bank --- supply of money and the interest rates

The government- government spending and taxes

10) Canadian economy is an example of a:

Command economic system

Market economic system

Mixed economic system

Traditional economic system

11) all points on a PPF are:

Productive efficient but not allocative efficient all of them

Allocative efficient but not productive efficient all of them

Productive efficiency means allocative efficiency

Productive efficiency is not possible without allocative efficiency

12) when a country can produce a commodity at a lower cost in terms of other commodities; or, when a country has a lower opportunity cost of production, we call it:

comparative advantage

absolute advantage

law of diminishing returns

productive efficiency

13) The Production Possibilities frontier is not a straight line because of:

Marginal analysis

law of diminishing marginal utility

law of diminishing returns

productive efficiency

14) The most important part of a circular flow model are:

Households

Firms

The products

All of them

15) invisible hand is another name for:

production

Price mechanism

Marginal utility

Comparative advantage