Microeconomics: Types of Goods and Consumer Behavior
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Questions and Answers

What is the primary focus of the study of economics?

  • Analyzing the economic condition of a geographical area
  • Allocating unlimited resources to fulfill desired ends
  • Navigating tradeoffs to deploy limited means towards desired ends (correct)
  • Optimizing the distribution of goods and services in a country

    • Who is credited with the development of macroeconomics as a separate branch of economics?

  • Karl Marx
  • John Maynard Keynes (correct)
  • Lionel Robbins
  • Adam Smith

    • What is the term used to describe the economic condition, status, and activities of a geographical area or country?

  • Economy (correct)
  • Microeconomics
  • Economics
  • Macroeconomics

    • What is the primary concern of the classical tradition in economics?

    <p>Full employment and full capacity of factories</p> Signup and view all the answers

    What is the year in which Lionel Robbins published his essay on the nature and significance of economic science?

    <p>1932</p> Signup and view all the answers

    What is the term used to describe the study of how humans make decisions about resource allocation?

    <p>Economics</p> Signup and view all the answers

    What is the primary function of the tertiary sector?

    <p>Providing commercial services to the general population and businesses</p> Signup and view all the answers

    Which of the following industries is typically associated with the secondary sector?

    <p>Aerospace manufacturing</p> Signup and view all the answers

    What is another term for the quaternary sector?

    <p>Knowledge economy</p> Signup and view all the answers

    Which of the following activities is typically associated with the quinary sector?

    <p>Top-level decision-making</p> Signup and view all the answers

    What is an example of an industry that is part of the primary sector?

    <p>Fishing</p> Signup and view all the answers

    Which of the following sectors includes activities such as culture, libraries, and scientific research?

    <p>Quaternary sector</p> Signup and view all the answers

    What is the main purpose of government intervention in the economy according to Keynesian economists?

    <p>To achieve full employment and price stability</p> Signup and view all the answers

    What does the term 'animal spirits' refer to in the context of economics?

    <p>Human emotions that affect consumer confidence</p> Signup and view all the answers

    According to Keynes, what is the primary basis for investment and consumption decisions?

    <p>Human emotions and feelings about the economy</p> Signup and view all the answers

    What is the primary characteristic of Economic Goods?

    <p>They are limited in availability and man-made</p> Signup and view all the answers

    Which of the following is a criticism of the concept of 'animal spirits'?

    <p>It cannot sufficiently explain economic cycles</p> Signup and view all the answers

    What is the primary focus of macroeconomics?

    <p>Determination of aggregate output and general price level</p> Signup and view all the answers

    What is the purpose of Producer Goods?

    <p>To produce other goods and services</p> Signup and view all the answers

    What is the main difference between Public Goods and other types of goods?

    <p>They are non-rivalrous and non-exclusive</p> Signup and view all the answers

    Which of the following statements about macroeconomics is correct?

    <p>It has a wide scope, encompassing a state, country, or even global economy</p> Signup and view all the answers

    What is the definition of Consumer Goods?

    <p>Any tangible thing produced and then purchased by final users to satisfy their needs</p> Signup and view all the answers

    What is the characteristic of Free Goods?

    <p>They have value in use but not in exchange</p> Signup and view all the answers

    What is the definition of Capital Goods?

    <p>Tangible and physical goods used in further production</p> Signup and view all the answers

    What happens to the demand of inferior goods when the income of consumers increases?

    <p>It decreases</p> Signup and view all the answers

    What is the nature of the relationship between the price of one good and the demand of its substitute good?

    <p>Negative</p> Signup and view all the answers

    Which of the following pairs of goods are complementary goods?

    <p>Car and Petrol</p> Signup and view all the answers

    What is the term for a commodity that is used by the consumer to satisfy current wants or needs?

    <p>Final Good</p> Signup and view all the answers

    What is the characteristic of normal goods?

    <p>Demand increases with increase in income</p> Signup and view all the answers

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