Types of goods
Such goods are not scarce, there is not cost involved in consuming them. What are they?
Economic goods
The prices are generally determined by the state.What kind of economic system is this?
Planned or command economy
"Rich people need to pay more taxes."
Normative
It is a downward sloping curve from left to right with price on Y axis and quantity demanded on X axis.
Demand curve
Specialisation leads to a person knowing all the parts of a job thoroughly
False
What is the term used to describe a good which cannot be used by anyone once one person has used it.
Non-rival
Name the only country which still has a command economy.
North Korea
Which sector of economy does a barber shop lie in?
Tertiary
Technology is a non-price factor that shifts...
The supply curve
Variety in work is an advantage of diwision of labour
False
It is likely that such kind of goods may be under-produced or over-produced in a market economy
Merit goods
shareholders are upset that the government is opposing the locating of the chemical factory close to the river. What kind of economy is this?
Mixed
A latin phrase used by economists to model effects of one change at a time
Ceteris paribus
It is the independent variable in the law of demand
Price
Capital includes all man-made resources
True
Demerit goods give rise to external costs. What do they mean?
Costs that the consumer or third party did not agree to pay.
In transitioning from planned to market economy, inflation is a common problem. Why is it so?
Because demand is higher than supply
Period over which key inputs (FOP) can be changed
Long term
What happens to supply and demand if there is a really good sale?
The supply will go down and the Demand will go up.
Public goods are non-excludable but rival in nature
False.
As a result of non-excludability, even those consumers who did not pay for them may gain benefits. What are such consumers known as?
Free rider
Linear downward sloping PPC?
constant opportunity cost
Direct payments made by government to producers of goods and services
subsidies
For a very expensive product what will be the demand and supply
Demand will be low and supply will be high.
The production possibility curve is a curve showing opportunity curve.
True