Use the Following to Answer Questions

question 18

Multiple Choice

Use the following to answer questions:
-(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2013 is the base year, real GDP in 2014 was:

• A) $400.
• B) $420.
• C) $425.
• D) $445.

Identify key factors of production and their roles.

Describe the concept of comparative and absolute advantages in trade.

Understand the role of economists and economic institutions in policy making and analysis.

Comprehend the principles underlying the circular-flow diagram and market operations.

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Definitions:

Flow Diagram

A graphical representation that shows the steps of a process or system using connecting lines and symbols.

Flow Diagrams

Visual representations of the sequence or flow of activities or operations within a process, system, or project.

Unnecessary Micro-Motions

Small, non-value adding movements or actions performed by workers that can lead to inefficiency and waste.

People And Materials

The critical resources involved in the production processes, emphasizing the importance of efficient management of human resources and raw materials.