estion 1 (2 points) Production of an output at the lowest possible average cost refers to allocative efficiency? Question 1 options: True False Question 2 (2 points) Saved Choose all that are relevant: Question 2 options: Co-operative Economies (foraging societies) Command Economies (totalitarian states) Competitive economies Monopolistic eonomies only Question 3 (2 points) Production Possibilities Model has below mentioned assumptions : Full employment Use of the best technology available Productive efficiency Question 3 options: True False Question 4 (2 points) What are macroeconomic goals (select all that apply) Question 4 options: Improved standard of living & Economic growth Full employment & Stable prices Viable balance of international trade & Equitable distribution of income Manageable government debt & deficit All of the above Question 5 (2 points) What is Equilibrium ? Question 5 options: The point where quantity demanded equals quantity supplied There is neither a shortage nor a surplus Both of the above Question 6 (2 points) Demand schedule is a table showing the various quantities demanded per period of time at different prices Question 6 options: True False Question 7 (2 points) Demand curve is a curve where income and expenses intersect Question 7 options: True False Question 8 (2 points) Choose all statements that are relevant to the concepts of Savings (Chapter 3) Question 8 options: The portion of income (Y) that is not spent on consumption (C) Important source of loanable funds Amount depends primarily on the level of incomes Question 9 (2 points) Expenditures Approach: Aggregate expenditures (AE) consist of (choose the relevant option) - Chapter 3 Question 9 options: Consumption (C) - spending by households Gross Investment (IG) - spending by businesses Government spending (G) - on goods and services Net exports (X - IM, or XN) - spending by foreigners All of the above Question 10 (2 points) Gross Domestic Income (GDI) means total earnings received by households, business and government in a period Question 10 options: True False Question 11 (2 points) Net Domestic Product (NDP) means the value of production after accounting for depreciation and indirect taxes Question 11 options: True False Question 12 (2 points) These are the signs of Cyclical unemployment (choose all that are relevant) (Chapter 4) Question 12 options: Occurs as a result of the recessionary phase of the business cycle At the peak of the business cycle, there is full employment Both of the above Question 13 (2 points) What are the sources that affect potential GDP (choose all that apply - Chapter 5) Question 13 options: Amount of physical capital available Rate of technological change Amount and quality of natural resources Long-Term Economic Growth All of the above Question 14 (2 points) (Chapter 6) Total spending = autonomous spending + induced spending (aggregated expenditure) Question 14 options: True False Question 15 (2 points) (Chapter 6) Choose all that apply to Investment Spending Question 15 options: Investment spending is far more volatile than consumption spending Investment spending can be postponed It is autonomous, which means it remains constant whatever the level of income