If physical and mental skills are required to make products, such products are called?
Physical resources
Economic resources
Chemical resources
Natural resources
For whom to produce relates to the
Functional distribution of income.
Personal distribution of income
Economic needs of the poor
Limited resources
A mixed economy:
Allocates resources via supply but not demand
Allocates resources via demand but not supply
Allocates resources via supply and demand
Allocates resources via market forces and government intervention
Which one of the following type goods satisfy a human want and everyone can make use of the goods and services fully ?
Free good
Economic good
Public good
Private good
Because public goods are characterised by being collectively consumed:
They are illegal
They are very expensive, thus the private sector cannot provide them
The government cannot produce them
The private sector may not provide them because they cannot exclude those who do not pay
The total benefit to society of producing an additional unit of a good or service is the
Marginal private benefit
Marginal social benefit
Marginal internal benefit
Marginal external benefit
The optimal level of provision of public goods is where society's total willingness to pay per unit is equal to the
Total cost of producing the good
Average cost of producing the good
Variable cost of producing the good
Marginal cost of producing the good
Private goods are:
Non-rival in consumption and their benefits are excludable
Rival in consumption and their benefits are excludable
Rival in consumption and their benefits are non-excludable
Non-rival in consumption and their benefits are non-excludable
Choice is fundamental to economic behaviours because
People find it difficult to choose what they want
Resources are scarce in relation to wants
Prices depend on people's choice
Resource scarcity
In a free market
Governments intervene
Governments plan production
Governments sometimes interfere
Prices adjust to reconcile scarcity and desires
