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15
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What is the difference between wealth and income?
wealth is a stock concept and income is a flow concept
income is earning from working and wealth is your total accumulated earning
income is accumulated income and wealth is earnings from working
wealth is a flow concept and income is a stock concept
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15
×
What is the price relative index?
the overall total expenditure within a country
ratio of a countrys GDP to GNP over a given time period
ratio of a price of a commodity at a time to its price a different time
the amount of wealth is tied up in capital goods
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15
×
Monetary policy is the policy of increasing productive output of a country
True
False
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15
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How do you calculate index numbers?
by finding the ratio of two numbers that are divided by one another
by finding the ratio of two economic variables together
by finding the ratio of base value to current value
by finding the ratio of current value to a base value of 100
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15
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Market mechanism - forces of demand and supply determine the price and quantity of goods and services
True
False
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thief
Give points!
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25
×
rocket
Go to first place!
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shark
Other team loses 5 points!
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baam
Lose 25 points!
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15
×
Which option is finite?
Sunshine
Wind
water
Space
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15
×
What is a transition economy?
changing your beliefs
changing from a centrally planned economy to a market economy
changing from a market economy to a centrally planned economy
changing between economys
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heart
Other team wins 20 points!
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seesaw
Swap points!
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fairy
Take points!
5
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25
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banana
Go to last place!
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banana
Go to last place!
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rocket
Go to first place!
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×
fairy
Take points!
5
10
15
20
25
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thief
Give points!
5
10
15
20
25
15
×
What are economic goods?
made from scarce resources with opportunity cost
made from a non-scarce resource with opportunity cost
made from scarce resources with no opportunity cost
made from non-scarce resources with no opportunity cost
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15
×
What is a capital good?
a good that is used in producing other goods rather than being bought
a good which is used for ones benefit
a good which is used to ones disadvantage
a good sold to the public that is consumed rather then used in production
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15
×
What is real national GDP?
output of the economy taking into account inflation
output of the economy
income of the entire economy
output of the economy without taking into account inflation
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15
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What is supply-side policy?
designed to make markets work more efficiently
the policy of increasing productive output of a country
changes to government taxation, government spending and borrowing
changes to interest rates and the supply of money
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15
×
Land is a natural resource used in production
False
True
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15
×
What option is not an assumption made in the simple model of the circular flow of income?
there is no government intervention
firms spend all income on the FOP
households spend all income on goods and services
that income is recieved in full
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