Answer Happy

E Question 1 (4 marks) "Poland broke the shackles of Soviet communist domination three decades ago. Free for the first time since World War II, Poland cast off its yoke of government control and central planning in favour of an American-style free enterprise system where consumers, not elected officials or bureaucrats, drive investment, production and buying decisions." Source: https://www.chronline.com/stories/brune ... mers-pick- winners.273515 Accessed: 14/10/21 The result to the Polish economy is that prices will determine... a. only the mix of output to be produced and the resources to be used in the production process. b. only the resources to be used in the production process and for whom the output is produced. c. the mix of output to be produced, the resources to be used in the production process, and for whom the output is produced. d. only for whom the output is produced and the mix of output to be produced. Question 2 (4 marks) "The four factors of production are needed in an efficient market to provide goods and services at an affordable price at the right time, place and mix,"... "Missing the calibration of these factors can be disastrous for the supplier and consumer." The supplier may face higher costs of production, forcing them to charge a higher price to the consumer or risk going out of business. Source: https://money.usnews.com/investing/investing 101/articles/what-are-the-four-factors-of-production Accessed: 14/10/21 With regard to factors of production, which of the following statements is NOT true? ➡>>

risk going out of business. Source: https://money.usnews.com/investing/inve ... production Accessed: 14/10/21 With regard to factors of production, which of the following statements is NOT true? a. Factors of production are also known as resources. b. In order to produce any good or a service, it is necessary to have factors of production. c. Factors of production include land, labour, capital, and entrepreneurship. d. Only those resources that are privately owned are counted as factors of production. Question 3 (4 marks) "The cost of one modern heavy bomber is this: a modern brick school in more than 30 cities. It is two electric power plants, each serving a town of 60,000 population. It is two fine, fully equipped hospitals. It is some 50 miles of concrete highway." Source: https://www.juneauempire.com/opinion/op ... -over-all/ Accessed: 14/10/21 The dilemma that all nations confront in the above example is that... a. spending in national defence can be accomplished using the same resources at the same time. 10

3 / 10 Question 3 (4 marks) "The cost of one modern heavy bomber is this: a modern brick school in more than 30 cities. It is two electric power plants, each serving a town of 60,000 population. It is two fine, fully equipped hospitals. It is some 50 miles of concrete highway." 100% Source: https://www.juneauempire.com/opinion/op ... -over-all/ Accessed: 14/10/21 The dilemma that all nations confront in the above example is that... a. spending in national defence can be accomplished using the same resources at the same time. b. an increase in spending in national defence implies more sacrifices of civilian goods and services. c. an increase in national defence is only possible if we produce more civilian goods and services. d. civilian goods and services can only be produced if we have adequate protection from the military. Question 4 Table 1.1: Production Possibilities for Brushes and Combs Combination Number of combs 4 Opportunity Cost Foregone Number of brushes) brushes Opportunity Cost (Foregone combs) NA (4 marks)

Question 4 Table 1.1: Production Possibilities for Brushes and Combs Combination J K L M N Opportunity Number of Cost(Foregone combs brushes) 4 3 2 1 0 NA Number of brushes 0 10 17 21 23 Opportunity Cost (Foregone combs) ΝΑ Referring to table 1.1, the opportunity cost of producing 17 brushes is... a. 2 combs b. 3.33 combs c. 17 combs d. 17 brushes (4 marks)

Question 5 (4 marks) Figure 1.1 is a hypothetical economy producing SUV's and Cars. Which of the following do not illustrate economic growth? supo andino C Figure 1.1 D. B E Output of SUVs PPI F PP2 a. A movement from point B to A b. A movement from point E to F c. A movement from D to E d. A movement from PP1 to PP2

(4 marks) Figure 1.2 represents an economy producing brooms and mops. Which of the following would represent lockdown restrictions assuming that mops and brooms are essential products? Figure 1.2 Output of Mops B C D PPI Output of Brooms a. A movement from C to A b. A movement from D to C c. No movement at C d. A movement from E to D F PP2