Question

Q1) Labor resources include:

a)unskilled workers but not skilled workers.

b)coffee breaks.

c)skilled workers but not unskilled workers.

d)a robot.

e)education and training of workers.

Q2)An economy's resources:

are limited in quantity.

consist of land, labor, capital, and money.

are unlimited when we use the latest technology.

are unrelated to its standard of living.

are always efficiently utilized.

Q3) The difference between what can be produced and consumed without specialization and trade and with specialization and trade is called:

Q4)A price floor does not benefit producers.

T/F

Q5)A price control always benefits consumers.

T/F

Answer 1

Q1. c) skilled workers but not unskilled workers.

Labor resources include the manpower involved in the production of goods and services. It includes all the skilled workers involved in the production process.

Q2. a) are limited in quantity.

Economy's resources consist of land, labor, capital and financial resources. These resources are limited in quantity and thus have scarcity.

Q3. Gains from trade.

Gains from trade is what a country produces without trade and what can be produced with trade.

Q4. False

Price floor benefit producers as they are able to get the minimum price of the product which otherwise they would not get. Government raise the price to price floor as they feel that producers are not getting required profits and thus the producers benefit.