12 Questions
What role is played by the three decision makers in the economy?
They are households, firms, and the government. Households supply factors of production, firms supply goods and services, and the government plays a regulatory role.
What does each numbered arrow represent in the economy?
Each arrow represents a flow of goods, services, or money between the three decision makers - households, firms, and the government.
Explain the role of households in the economy.
Households supply factors of production such as labor, land, and capital to firms.
Describe the role of firms in the economy.
Firms transform the factors of production from households into goods and services for consumers.
What is the function of the government in the economy?
The government plays a regulatory role, ensuring fair competition, providing public goods, and managing the overall stability of the economy.
How do households contribute to the production process?
Households contribute by supplying labor, land, and capital to firms as factors of production.
What is the primary output of firms in the economy?
The primary output of firms is goods and services for consumers.
Explain the significance of the three decision makers in the economy.
The three decision makers in the economy are households, firms, and the government. They play a crucial role in determining the allocation of resources, production, and distribution of goods and services.
Identify and explain the meaning of each numbered arrow in the economy diagram.
The numbered arrows in the economy diagram represent flows of goods, services, and money between households, firms, and the government. They illustrate the circular flow of income and resources in the economy.
What is the primary function of households in the economy?
Households provide the primary labor, land, and capital resources used in production processes.
Describe the main role that firms play in the economy.
Firms are responsible for the production of goods and services to meet the demands of households and other firms.
Explain the function of the government in the economy.
The government regulates economic activities, provides public goods and services, and redistributes income to promote economic stability and growth.
This quiz covers the Introduction to Agricultural Economics module with a total of 14 marks. Questions must be carefully read and all answers submitted in a typed Word document as per specified formatting instructions. Deadline for submission is 15 March 2024, 23h59 via Blackboard.
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