Which resources are used to produce the public good?
Cost using
Demand using
Money using
Market using
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
Which good is used to satisfy a human want and which is scarce?
Economic
Social
Biological
Physical
Human wants are:
Always fixed
Limited
Unlimited
Likely to decrease over time
Food, clothing, and shelter are referred to as,
Commodity
Material
Products
Costs
Capitalist economic system is also called
Socialist economy
Mixed economy
Free market economy
Economic system
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
How to produce is a question relating to
Choice of techniques of production
Distribution of output produced
Growth of resources
Unlimited resources
Which one of the following is used to produce more goods and service in the future ?
Physical capital
Human capital
Natural capital
Money capital
Markets fail to produce an efficient allocation of resources, but governments also fail because:
Elected officials will act selflessly for the good of society and ignore their own self interest
The managers of government agencies are trying to maximise the profit of their agency and they ignore the implications that this has on other departments
The optimal level of public goods may be too expensive for the society to produce
The measurement of social costs and benefits is difficult and imprecise