Goods And Services

What are goods?

• Things you want

• Tangible items people want or need

• Services provided by the government

• Things that are naturally abundant

Answer explanation

Goods are tangible items that people want or need, making the correct answer choice 'Tangible items people want or need'.

Which of the following is an example of a service?

• Clothing

• Food

• Transportation

• Electronics

Answer explanation

Transportation is an example of a service because it involves providing a means of moving people or goods from one place to another for a fee.

1. 
   How do free goods differ from economic goods?

• Free goods are scarce, economic goods are abundant

• Economic goods are scarce, free goods are abundant

• Both are scarce

• Both are abundant

Answer explanation

Free goods are abundant because they are available in abundance without any cost, while economic goods are scarce as they have a limited supply and are subject to demand.

Which of the following is a durable good?

• Car

• Food

• Newspaper

• soap

Answer explanation

A car is considered a durable good because it is a long-lasting consumer good that is used for an extended period of time.

What are the three types of consumer goods?

• Essential, luxury, and perishable

• Expensive, affordable, and basic

• Tangible, intangible, and perishable

• Durable, non-durable, and services

Answer explanation

The three types of consumer goods are durable, non-durable, and services, making this the correct choice.

How do households contribute to the economy as producers?

• By consuming goods and services

• By supplying factors of production

• By regulating markets

• By investing in businesses

Answer explanation

Households contribute to the economy as producers by supplying factors of production, such as labor, capital, and entrepreneurship, which are essential for the production of goods and services.

What is the primary role of households as consumers?

• Producing goods and services

• Managing government expenditures

• Purchasing goods and services

• Regulating the economy

Answer explanation

The primary role of households as consumers is to purchase goods and services, making them an essential part of the economy by driving demand and consumption.