The three principal economic units in any system are…*1 pointA. Trade, industry, and banking.B. workers, consumers and shareholdersC. households, firms and governmentsD. companies, industry, and plants.Mining is an example of_____.*1 pointA. tertiary productionB. primary productionC. secondary productionD. advanced production.A movement along the same demand curve either upwards or downwards as a result of changes in price implies*1 pointA. a change in demandB. a change in quantity demandedC. an increase in demandD. a shift in the demand curve to the right.What are inferior goods? These are goods______.*1 pointA. that are generally in short supplyB. that are no longer in demandC. whose demand falls as income increasesD. whose price falls as demand increasesIn the normal market situation, when the price of a commodity rises, the___________.*1 pointA. demand for the commodity will rise.B. demand for the commodity will fallC. supply of the commodity will be constantD. supply of the commodity will fallThe word “ENDS” in economics means______.*1 pointA. resourcesB. material wellbeingC. human wantsD. end of our wantsThe market price of a commodity is normally determined by the ______.*1 pointA. law of demandB. interaction of the forces of demand and supplyC. total number of people in the marketD. total quantity of the commodity in the market

Graphically, the market demand curve issteeper than any individual demand curve that is part of it.greater than the sum of the individual demand curves.the horizontal sum of individual demand curves.the vertical sum of individual demand curves.Products and services are scarce solely because resources are finite in amount.truefalseWhich of the following is an example of a public good?a weather warning systema televisiona sofaa bottle of sodaEconomic systems differ according to which two main characteristics?who owns the factors of production and the methods used to coordinate economic activitythe technology used in production and the quantity and quality of natural resourceshow goods are produced and who gets themthe political system in place and the degree of scarcity facing the economyMarket failure is said to occur whenevercompetitive markets do not allocate resources in the most economically desirable way.prices rise.some consumers who want a good do not obtain it because the price is higher than they are willing to pay.government intervenes in the functioning of competitive markets.Producer surplus is the difference betweenthe maximum prices consumers are willing to pay for a product and the lower equilibrium price.the quantity supplied and quantity demanded at an above equilibrium price.the minimum prices producers are willing to accept for a product and the higher equilibrium price.the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.Option 2

An economic systemrequires a grouping of private markets linked to one another.is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem.requires some sort of centralized authority (such as government) to coordinate economic activity.is a plan or scheme that allows a firm to make money at some other firm's expense.What two conditions must hold for a competitive market to produce efficient outcomes?Demand curves must reflect all costs of production, and supply curves must reflect consumers' full willingness to pay.Supply curves must reflect all costs of production, and demand curves must reflect consumers' full willingness to pay.Firms must minimize production costs, and consumers must minimize total expenditures.Firms must maximize profits, and consumers must all pay prices equal to their maximum willingness to pay.Unlike a private good, a public goodhas no opportunity costs.has benefits available to all, including nonpayers.produces no positive or negative externalities.is characterized by rivalry and excludability.Market failure is said to occur wheneversocial surplus is maximized.competitive markets fail to achieve economic efficiency.society is getting as much benefit as possible from its limited supply of resources.the markets are competitive.If one person's consumption of a good does not preclude another's consumption, the good is said to benonrival (in consumption).rival (in consumption).nonexcludable.excludable.

Name the economic system:...goods and services produced to meet society's needs and wants...factors of production are owned by individuals...law of supply and demand

In a ________, if demand for a product exceeds supply, prices will rise, signalling to producers to produce more.Question 4Select one:a.Collectivist economyb.Command economyc.Market economyd.Common law economy

Choice is necessitated by _____.*1 pointA. demand and supplyB. cost of productionC. production possibility curveD. scarcity of resources