1. What are the pure public goods?
- Street lights, Flood defences and Lighthouses.
- Capital goods.
- Education and Health care.
- Merit and Demerit goods.
1 of 20
Other questions in this quiz
2. Non- excludability is where:
- no one can be excluded from the benefiting of a good.
- people can be excluded from benefiting of a good.
- people can stop others from using the good.
- the free market left alone fails to deliver an efficient allocation of resources.
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. A decision by the government to introduce and expansionary fiscal policy would be less likely to succeed in reducing unemployment if a country had
- a high marginal propensity to import.
- a fixed exchange rate.
- a high level of business and consumer confidence.
- a high level of cyclical unemployment and spare capacity.
5. Choice is an important element in the basic economic problem because
- high demand leads to high prices.
- limited resources have alternative uses.
- incomes are distributed unequally.
- wants increase with income.
Similar Economics resources: