Introduction to ekonomi

2. opportunity cost is defined as
A: The cost of the second best option that will have to be forgone in order to select the best option .

3. Which of the following services is not available in a free market economy ?
- Defence services

4. In a free market economy , production resourcs are allocated through
- The power of supply and demand in the market

5. In a centrally planned economy , the problem of for whom a good should be produced is solved by
A : Rationing

6. In a mixed economy , the problem of how much of a good should be produced is solved by
A: Market mechanism

7. An economy reaches productive efficiency when
A : Production of a good cannot be increased without reducing the production of another good .

8. The figure below shows a production possibilitis curve for the production of good x and good y . The points that indicate achievable production levels are points .
A : P, F, and M

9. Of the following , which is not a merit of free market economy ?
A: Social welfare is prioritised .

10. Government intervention is necessary in the economy because
A : The government wishes to overcome weaknesses in the free market economy .