Chapter 2.Economic Activities

Multiple Choice

1. C.Comsumption
2. A.Everything done to make or create goods
3. B.Directly statisfy human needs
4. A.The indeference curve is below the budget line
5. C.Statisfy human needs and increase the prosperity
6. D.All activities in expediting goods from producers to consumers
7. B.The number of labour is incresing
8. A.Goverment
9. D.Individuals
10. B.Government makes constitutins and regulations

Essay.

1. Explain the definition of consumption, production, and distribution.
2. Explain the defference between consumption, production, and distribution.
3. Explain the consumer behaviour with the indifference curve approach.
4. Explain thye economic activity curcular flow diagrams.
5. explain the role of consumption household and firm consumption
6. Explain the role of gonvernment and society.
7. Explain the role of foreign costumers and producers
8. Give detail explanation   onb every economic entities in an economy.
9. Explain the flows formed by the intteraction between consumption household and firms consumption 
10. Explain types of incomens received by consumption house hold .

Answer.

1.  Consumption is the direct usage of goods and services to fulfill one's needs. Production is making goods or providing services. Distibution are all of the goods handling activities starting from the producers all the way to the hands of the costumers.
2. If the consumption to use the goods an service, the production is to produce the goods and service, and the distribution is to distribute all the goods and the services. 
3. In maximazing their satisfication, consumers are restrained by their constrained budgets. They cannot reach the highest satisfaction level because their consumption is limited by their budget constraint
4. Circular flow diagram which consists of two-sector and four-sector diagram. Circular flow diagram with two-sector : Two kinds of market are established as a consequence of this interaction between consumption household and firms consumption. The first is product market. In this market, household buy goods and services that produced by firms. The second one is factor market, where firms buy inputs such as labour, capital, andland from households. 
5.