Adam Smith's idea of the "invisible hand" says that given a country's resources and its initial distribution of wealth, the use of markets will eliminate problems of hunger and dissatisfaction. 1) True 2) False
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- 39. Which of the following statements accurately represent ideas proposed by Adam Smith? a) the market system does not require any help from the government to survive. a) government should be weak. b) the government should protect domestic industry against foreign imports. c) the value of money is based on the goods it can buy d) selfishness is a good thing for society and the economy.) Listen Some points on the production possibility curve represent less than full employment and thus the optimal combination of resources should be found based on a society's resource endowments. True False Listen The statement in a newspaper that "consumer prices rose last month by 1 percent, and if this trend continues, the annual rate of inflation will be 12 percent for the year" is an example of a normative economic statement. 1) True 2) False ) Listen A society will put more investment on consumer goods than capital goods if it values more of present happiness than future happiness. True False Listen Budget lines and production possibility curves have a common assumption of increasing opportunity costs. True O False Listen As long as marginal benefit exceeds marginal cost, any economic activity is optimal. 1) True 2) False1. Classify the following questions as Microeconomics or Macroeconomics and provide a justification for your choice. (i) How will the market for melons be affected after Hurricane Dean? (ii) How much will the Trinidadian economy grow this year? (iii) What are the factors which determine the choice that a person makes between buying a Honda Accord or a Toyota Corolla? (iv) What will the inflation rate be for Belize?
- Select the number of the question and the letter to indicate the answer you consider correctfor each question. Answers to all questions are to be recorded on the answer sheet. (Pleasenote - Do not submit the full question with a circle answer. ONLY the number and theletter).1. The Law of demanda. applies to final consumer goods but not to the productive resources purchased bybusiness firms.b. tells us how much of a good people want, but not necessarily how much of that good theyare willing to pay for.c. tells us that when the price of a good falls, quantity demanded will increase.d. applies only to goods that are not absolute necessities. 2. The law of supply states that all other things remaining the same:a. as the price of a good increases, supply of the good will increase.b. as the price of a good increases, the quantity of the good supplied willincrease.c. as the price of a good increases, demand for the good will increase.d. as the price of a good increases, the quantity of the…Explain how markets can allocate resources in a way that they go to those who value them the most.A manager asks an employee, "Should we distribute tickets to the concert on a first-come-first-served basis or through a lottery?" The manager's question is best classified as which one of the following fundamental economic questions? For whom to produce. How to produce What to produce O Why to produce
- Studying the determination of prices in individual markets is primarily a concern of_____________. a. Microeconomics. b. Macroeconomics. c. Negative economics. d. Positive economics.Identify the different factors of production. Identify the three (3) central problems of the economy. Identify economic systems or organizations of economic activities. Differentiate normative and positive economics. Help me with this one, please. Thank youuuTrue/False The resources used to make all goods and services are called factors of production
- 10. Which one the following represents a theory for the long-term?a. Theory of factor endowmentsb. A theory of comparative advantagec. A theory based on the product cycled. An overlapping demand theoryThe world population will double in the next 10 years, but you personally are unlikely to eat only half as much. To explain this phenomenon, anthropologists have come up with this kind of explanation of world hunger: a. Inequality b. Division of labor c. Resource expansion d. Scarcity.a) Briefly explain how is the ‘Islamic man’ different from the ‘economic man’? b) Describe whether profit maximization acceptable as the objective of production in Islamic economics? Give an example to support your argument.