Which of the following BEST defines the soneenkiscarcily”? Gods axl services to consumers ate sv short supply (8) ‘There are not enough resources available at present @ - Mieexcesso/ human wants over the economy's resources (D) The wants of society are greater than the supply of goods A baker can bake any combination oFitems using the following options below. [ “Loaves |< | of bread | 36 ‘What isthe opportunity cost of producing one cake? (A) Lloafof bread (B) Stoaves of bread @ ? loaves of bread ) Sloavesof bread Which of the following statements BEST defines a ‘production possibility frontier’? @ __ oe limit of the combinations of goods and services that can be produced (8) The combinations of goods ancl services that may be produced in a country (©) The mixture of goods and services that are desired by a country (P) An illustration of an economy producing goods and serviees for its citizens 4 refers to the following diagiams Seger ofproduction possibiliy + R Capital goods s w Dana oods (ny Boos Consumer goods K 6 el - Consumer woods Q Capital (Dp) gvods RL Consumer goods Which diagram illustrates dec ‘opportunity costs? A) A @) 8B ( g @>Which of the following diay ams ilustrates a perfectly elastic dentand curve? Prive! } a | 7 we - Price ae u oD Price a Price o le 6. A variable whose value is determined independently of the model may be classified as (A) exogenous (B) endogenous (©) relational (0) functional GO ONTO ‘THE NEXT PAGE 021 16010/CAPE20074. refer tn the following diagrams lem 9 refers te the dingram beiowy sumer’ ital udgot line ie. Hems ot Goo 5 9, The diagram above BEST describes the tclationship between income and quantity demanded of 1 nonnal good agiffen good an inferior good ostentatious goods 7 What has happened fo cause the budget line to shill from ab toed? (A) Consumer income decreased and prices remained unchanged (B) The price of good x fell, ceteris paribus, 10, The following isa caption from Tropic Island (C) ‘The price of good x rose and the pri daily newspaper of good p fell e The prices of good x and y-fell in the a = | THREATENS THE ISLAND | a J IC, is downward sloping and convex to the origin. Theshape is convex because the Which of the following could have led! to the (A) consumer opportunity cost is fall in chicken prices? increasing (B) marginal rate of substitution is Increasing demand for chicken eo = é Decreasing demand for chicken marginal rate of substitution is (©) Increasing supply of chicken (0) consumer opportunity cost is (D)) Recast amenlyofcticken decreasing