1. What are goods provided by the government for people who are deemed to need them called?
- Negative externalities.
- Demerit goods.
- Merit goods.
- Positive externalities.
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Other questions in this quiz
2. The level of capital investment spending by private sector businesses tends to vary ______ with interest rates and ______ with business confidence
- positively, positively
- negatively, negatively
- negatively, positively
- positively, negatively
3. An increase in imports of consumer goods is most likely to have been caused by a
- rise in direct taxation.
- fall in the exchange rate.
- rise in household disposable income.
- rise in household saving.
4. Choice is an important element in the basic economic problem because
- high demand leads to high prices.
- wants increase with income.
- limited resources have alternative uses.
- incomes are distributed unequally.
5. Which one of the following is a measure of productivity?
- output divided by employment.
- the quantity of capital equipment used divided by its price.
- the annual percentage increase in production.
- the total amount of output produced each month.