Economics Chapter 13-15 Overview

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Questions and Answers

What does the term flow represent in economics?

The quantity of an economic variable measured over a specific period of time (correct)

The total amount of a variable measured at a single point in time

A measure of economic growth over multiple periods

The average rate of production across different industries

What does the ceteris paribus assumption allow economists to do?

Examine the effects of all variables simultaneously

Create complex models with multiple interacting variables

Eliminate the need for empirical data

Simplify economic theories by isolating one variable's effect (correct)

Which statement best describes rational behavior in economics?

Consumers generally act based on emotions and biases

Individuals make decisions based solely on social influences

Economic agents choose the option that maximizes their utility given their constraints (correct)

Firms always aim to minimize production costs irrespective of market conditions

What is microeconomics primarily concerned with?

The behavior of individual consumers and firms (A) Signup and view all the answers

Which of the following is primarily studied in microeconomics?

Consumer behavior and price determination (D) Signup and view all the answers

How does macroeconomics differ from microeconomics?

It examines the economy as a whole rather than individual segments (A) Signup and view all the answers

What aspect does the theory of price determination in microeconomics focus on?

The way in which market supply and demand establish prices (D) Signup and view all the answers

What does the term 'rational behavior' imply regarding consumer choices?

Consumers seek to maximize their satisfaction given constraints (D) Signup and view all the answers

What is a primary reason for engaging in international trade?

To increase variety of products available (D) Signup and view all the answers

Which organization is primarily responsible for providing financial assistance to developing countries?

World Bank (B) Signup and view all the answers

What is a common disadvantage of international trade?

Loss of jobs in some sectors (B) Signup and view all the answers

What is the term used to describe restrictions imposed by countries to control international trade?

Trade barriers (D) Signup and view all the answers

Which of the following is a key function of the International Monetary Fund?

Provide loans to countries with balance of payments problems (C) Signup and view all the answers

What does the term 'balance of payments' refer to?

A record of all economic transactions between residents of a country and the rest of the world (A) Signup and view all the answers

Which of the following statements accurately describes globalization?

It facilitates the interconnectedness of markets worldwide (C) Signup and view all the answers

What is a common effect of inflation on an economy?

Reduction in consumer spending (A) Signup and view all the answers

What does the production possibilities curve (PPC) illustrate?

The combinations of two goods that can be produced with limited resources. (B) Signup and view all the answers

If the country produces at combination B, what is the opportunity cost of producing one additional bag of rice?

4 tins of butter (C) Signup and view all the answers

Which point on the PPC illustrates maximum production of butter?

Point A (A) Signup and view all the answers

What does the curve outside the boundary formed by points A and F represent?

Combinations that are unattainable with current resources. (D) Signup and view all the answers

What occurs as you move from combination C to combination D on the PPC?

More rice is produced at the expense of butter. (B) Signup and view all the answers

At combination E, how many tins of butter are produced?

40 tins (A) Signup and view all the answers

What does the boundary of the PPC signify?

The limit of production for available resources. (D) Signup and view all the answers

Which combination demonstrates the highest opportunity cost when increasing rice production?

Combination F (B) Signup and view all the answers

Which organization is acknowledged for permitting the use of examination materials in the Study Text?

Institute of Chartered Accountants of Nigeria (ICAN) (B) Signup and view all the answers

What was the main task of the team constituted following the approval of the new syllabus by ABWA Council?

To review the Study Texts (B) Signup and view all the answers

Which institution's copyright holders are recognized for their contributions in the provided content?

Institute of Chartered Accountants, Ghana (ICAG) (A) Signup and view all the answers

Who served as the Chairman of the ATSWA Examinations Committee?

Deacon Solomon Oluwole Adeleke (B) Signup and view all the answers

Which board members are listed under the editorial board according to the content?

Deacon Solomon Oluwole Adeleke and Mr. Rotimi Akanni Omotoso (C) Signup and view all the answers

Which organization provided access to International Accounting Standards and International Financial Reporting Standards?

International Accounting Standards Board (IASB) (C) Signup and view all the answers

When did the new syllabus for the ATSWA Examinations become effective?

September 2017 (D) Signup and view all the answers

What is the role of the reviewers and editorial board members in the development of the Study Texts?

To supervise the review process (B) Signup and view all the answers

What is the relationship between the marginal product of labor (MPL) and the average product of labor (APL) when the MPL curve is above the APL curve?

APL increases. (A) Signup and view all the answers

At what point does the marginal product of labor (MPL) become zero?

At the intersection of the MPL curve and the horizontal axis. (B) Signup and view all the answers

Which of the following statements best describes the condition under which the Law of Diminishing Returns operates?

Fixed inputs are held constant while variable inputs increase. (A) Signup and view all the answers

What happens to the average product of labor (APL) after it reaches its maximum?

APL begins to decline. (B) Signup and view all the answers

What is indicated by the MPL curve intersecting the APL curve?

The APL is at its maximum point. (C) Signup and view all the answers

Which of the following best defines the phenomenon where adding more of a variable input causes total product to eventually decline?

Diminishing returns. (B) Signup and view all the answers

Which of the following is true about the behavior of the average product of labor (APL) as long as the total product remains positive?

APL remains positive. (A) Signup and view all the answers

When does the marginal product of labor (MPL) start to decline?

After the employment of the seventh unit. (C) Signup and view all the answers

Study Notes

Chapter Thirteen: Inflation and Unemployment

Chapter covers effects and control of inflation, and unemployment.
Specific page numbers are provided for each subtopic.

Chapter Fourteen: International Trade and Finance

Introduces the basis and theories of international trade.
Discusses advantages and disadvantages of international trade.
Covers terms of trade, reasons for trade protection, and trade barriers.
Explains balance of payments and foreign exchange.
Addresses globalization and its impact on developing countries.
Includes a summary and revision questions.

Chapter Fifteen: International and Regional Organizations

Learning objectives are outlined at the beginning of the chapter.
Focuses on World Bank grants, International Monetary Fund, African Development Bank, and European Union.

Acknowledgements and Reviewers

Acknowledges financial contributions from the Institutes of Chartered Accountants of Nigeria (ICAN), Ghana (ICAG), and Liberia (LICPA).
Thanks copyright holders including ICAN, IFAC, and IASB for permission to use their materials.
Lists reviewers (Professor J.A Fabayo, Professor T.A Akinbobola, Mr. S.A Adebayo) and editorial board members (Deacon Solomon Oluwole.Adeleke, Mr. Rotimi Akanni Omotoso).

Chapter One: Introduction to Economics

Defines economics as the study of how societies use scarce resources to satisfy unlimited wants and needs.
Explains the concepts of flow, ceteris paribus, and rational behavior.
Divides economics into microeconomics (focus on individual behavior) and macroeconomics (focus on the economy as a whole).

Production Possibilities Curve (PPC)

Illustrates the various combinations of two goods that can be produced when resources are fully and efficiently utilized.
Uses a table and figures to show a PPC showcasing scarcity and opportunity cost.
Highlights points on the curve representing different production scenarios.

Chapter Five: The Theory of Production

Discusses short-run production schedules and the relationship between total product (TPL), average product (APL), and marginal product (MPL).
Illustrates these relationships with a graph (Figure 5.1).
Explains the law of diminishing returns which states that as more of a variable input is added to a fixed input, initially marginal product increases, eventually diminishing.
Highlights conditions for law of diminishing returns: short-run production with fixed and variable inputs, and only the variable factor is changed.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers key concepts from Chapters Thirteen to Fifteen, focusing on inflation, unemployment, international trade, finance, and regional organizations. You'll explore the effects of inflation, the fundamentals of international trade, and the roles of organizations like the World Bank and IMF. Test your knowledge with specific questions designed for each chapter.