Which of the following relates factors of production to the sources of income correctly?

a)Entrepreneurship earns rent.

b)Land earns interest.

c)Land earns rent.

d)Capital earns profit.

e)Labour earns rent.

IndividualsAandBcan both produce goodX. We say thatAhas a comparative advantage in the production of goodXif

a) Acan produce less units ofXin a given time period thanB.

b) Ahas a lower opportunity cost of producingXthanB.

c)Ahas a higher opportunity cost of producing X than B.

d)Acan produceXusing newer technology thanB.

e)Acan produce more units ofXin a given time period thanB.

The reference base period is 2002. A consumer price index of 122 in 2018 means that

a)prices of consumer goods have more than doubled.

b)if the price of a good was $100 in 2002, its price in 2018 is $122.the average of the prices c)paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2018 than it was on average during 2002.

d)prices of consumer goods have gone up by a factor of 12.2.

e)the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2018.

Each of the following would be considered a macroeconomic topicexcept

a)the cause of recessions.

b)the reasons for a decrease in the unemployment rate.

c)the effect of the government budget deficit on inflation.

d)the selection of production techniques.

e)the determination of aggregate income.

The law of demand states that, other things remaining the same,

a)the higher the price of a good, the greater is the quantity demanded.

b)the higher the price of a good, the smaller is the quantity demanded.

c)as income increases, willingness to pay for the last unit purchased increases.

d)price and quantity supplied are positively related.

e)the higher the price of a good, the smaller is the quantity supplied.

Opportunity cost is

a)the money you spend on food, shelter, and clothing.

b)the value of your favourite activity.

c)your value of leisure.

d)the marginal benefit from an activity.

e)the highest-valued alternative that we give up to get something.