Question 1 {1 point] Which of the following best characterizes the circular flow of income? ("'3 Businesses buv resources from the government. and households buy goods and services from businesses. I: "' 1, Households buvr factors of production from businesses. and businesses buyf H goods and services from households. F\". Businesses buv resources from households, and households use their income I from the sale of resources to bulf goods and services from businesses. l-"' -| The government purchases resources from businesses and households and then ' sells goods and services to businesses and households. Question 4 {1 point] In the simple circular flow model: -_-:' a] income is equal to spending. --:' '3'] saving is equal to consumer spending. --" '33 goods and services are equal to consumer spending. --" '3\" factor payments are equal to goods and services. Question 3 i1 pointJ 1il'li'hich of the following is MDT part of a market economy? --il a] The government plays a primary role in protecting private property rights. --" '3] Consumers are free to decide what goods and services to purchase. .3' 'g. c} Product prices are the principal mechanism for communicating information in the system. ._| . . . --' '3\" Most economic decisions are made by central governments. Question 9 {1 point] Macroeconomics was developed to explain: --:' 3] the Great Depression. --:' bi jobless recoveries. ._.-' E} the Internet boom. '3._:3' d] the covio-ts pandemic Question 13 [1 point} The basic idea of opportunity cost is that: I' 'I . . . . . '--' 3] using resources In an activity Imposes costs on other people. "--" '3] economic agents are always looking for better opportunities. .3"';. c} the decision to use resources in one activity means that they cannot be used elsewhere. "--:' '3\" buyers miss opportunities to find better bargains. Question 14 [1 point} A point on a nation's production possibilities frontier indicates: combinations of output that are unattainable, giyen the current stock of resources and technology. '3. .3' a] .;:_:;. b] that resources are fully utilized in producing a giyen combination of goods and services. I' 'I . . . . '--' '3} an undesirable combination of goods and services. "--:' d] levels of production that will cause both unemployment and inflation. Question 17 (1 point) Economic growth is shown as a: J a) movement down along the PPF. b) shift to the right in the PPF. O ) movement up along the PPF. O d) shift to the left in the PPF. Question 18 (1 point) Improvements in production capacity will: ( a) move the economy along the PPF. O b) move the economy up to the PPF. O d shift the PPF outward. O d) rotate the production possibility frontier (PPF] clockwise. Question 19 (1 point) Figure: Determining Production Possibilities 25 X 15 Good B 10 20 30 Good A (Figure: Determining Production Possibilities) The graph shows the PPF for goods A and B and X marks a combination that O a) has no opportunity costs. O b) cannot be obtained even with improvements in technology. O c) is obtainable if workers work harder. d) is unobtainable with current resources