Question

1. In the circular flow​ model, which of the following is on the selling side in the goods​ market?

A. only firms

B. exporters

C. both firms and households

D. ​federal, state, and local governments

E. only households

2. Which factor of production does human capital​ enhance?

i. land

ii. labor

iii. capital

A.​i, ii, and iii.

B.ii only.

C.i and ii.

D.i only.

E.iii only.

3. Nigeria would be classified by the International Monetary Fund as

A.a developing economy

B. a transition economy

C. a resource- based economy

D. an emerging market economy

E. an advanced economy

4. Which of the following is not considered a factor of production?

A.capital

B.entrepreneurial ideas

C.money

D.land

E.labor

5.What is not true about rational choice?

A. It involves comparing costs and benefits.

B.It can result in different decisions for different individuals.

C.It might turn out not to have been the best choice after the event.

D.It is the same for all individuals.

E.It is a choice that uses the available resources to best achieve the objective of the person making the choice.

Answer 1

Q1)Ans:-C. both firms and households

Explanation:- The circular flow model describes how the money moves through the society from producers to workers as wages and move back to producers as price of products.Household and firms are the two selling sides of goods market in circular flow model.

Q2)Ans:-B)Labour

Explanation:-Human capital is man's knowledge,experience and skills which can be put together with land,labour,and physical capital can produce desired output.Therefore investment in human capital such as labour with more young,healthy and skilled population is more productive than a physical capital.

Q3)Ans:-A)a developing economy

Explanation:-Nigeria would be classified by the international monetary fund as a developing economy.

Q4)Ans:-C)Money

Explanation:-Factors of production including four factors .They are land,labour,capital and enterpreneurship .Money is also included in the capital.

Q5)Ans:-D)It is the same for all individuals.

Explanation:-Rational choices are individual preferencess,believes and constraints with sociological and psychological approaches in human decision making.Rational choice can result in different decisions for different individual and not same for all individual.