HUL 211 Introduction to economies: Minor 1 7 February 2018, fied otherwise. Instructions: Each question carries 1 mark unless speci the following may contribute to famine EXCEPT 1, According to Amartya Sea, all oft Shorted goverment ples Ago An ‘unfair’ press ‘Unequal distribution of income, Democratcally elected governments |b. Creative destruction —___ 1c General theory of employment, interest and money ad Laisser-fairefam considering loaning my brother $10,000 for one year. He has agreed to fon the loan, If 1 don't oan my brother the $10,000, it will stay in my bank es, A and B, and that they can both produce 2 goods, X advantage predicts that: advantage in producing the other. try A has an absolute advantage in both providing that B od in which it has the least comparative disadvantage, the greater comparative advantage. Hake place ifboth countries are at acomparativ‘State true or false. (0.5%4=2 matks) The field of economics as an object of study really began when communities started trading with each other. 9. Money is nota factor of production, Microeconomics is the study of how households and firms make decisions and how they interact in markets Extensive government planning isa characteristic of capitalism. F 10. Which ofthe following statements is normative? el eis caue aa coooomy to grow more slowly People work bard if the wage is hgher 94 The unemployment rate shouldbe lower. Printing oo much money causes ination “A tational person doesnot act unless nal cost hat exceed marginal benefits marginal benefits that exceed marginal costs