19 Questions
Which one of the following goods is considered a free good?
Sunlight
Which one of the following statements about free goods is true?
Free goods can be used to make a profit
Which one of the following goods has become an economic good due to increasing population and pollution?
Drinking water
In Paper 1 of the exam, multiple choice questions (MCQ) will explore your understanding of which concept?
Free goods
Which one of the following is an example of a free good?
Drinking water
Which one of the following goods is NOT considered a free good?
Government education
Which one of the following is a characteristic of free goods?
They are abundant in supply
Which one of the following goods is considered an economic good?
Trainers
Which one of the following goods is NOT considered a free good?
Bicycles
Which one of the following goods is NOT considered a free good?
Trainers
Which one of the following best describes the basic economic problem?
Resources are scarce and wants are unlimited
How do scarce resources affect prices in a free market?
The scarcer a resource, the higher the price consumers will pay
What are the essential needs of human life?
Shelter, food, clothing
How do scarce resources affect the costs of production for producers?
Products made from scarce resources have higher production costs
What do workers want in their working environment?
A more comfortable and safer working environment
What decision do governments have to make regarding goods/services?
Whether to provide certain goods/services or allow private firms to provide them
What are economic goods?
Goods that are scarce and have value
What makes a good an economic good?
Its availability in limited quantities
What does economics study?
The allocation of resources in society
Study Notes
Free Goods
- A free good is a good that is available in unlimited supply, making it non-rivalrous and non-excludable.
- Examples of free goods include air, sunshine, and scenic views.
Economic Goods
- An economic good is a good that is scarce, making it rivalrous and excludable.
- Examples of economic goods include food, clothing, and shelter.
- Economic goods are limited in supply, which affects their prices and production costs.
Basic Economic Problem
- The basic economic problem is the scarcity of resources, which leads to competition for their allocation.
- This problem arises because human needs are unlimited, but resources are limited.
Human Needs
- Essential needs of human life include food, shelter, clothing, and other basic necessities.
Governments and Goods/Services
- Governments have to make decisions about the allocation of goods and services, considering the needs of their citizens.
Economics
- Economics studies the allocation of scarce resources to meet unlimited human needs.
Scarce Resources
- Scarce resources affect prices in a free market by creating competition and driving up prices.
- Scarce resources also increase the costs of production for producers.
Workers and Work Environment
- Workers want a safe and healthy working environment, which is an essential aspect of their job satisfaction.
Test your knowledge on scarcity and the basic economic problem with this quiz. Learn about finite resources, unlimited wants, needs vs. wants, and more.
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