Market Economics

True or False. A Market is an institution where buyers of goods and services and sellers of goods and services, negotiate the price of each good or service

• True

• False

How many types of productive resources are available in the economy?

• One

• Two

• Three

• Four

Resources that represent those found in nature and include arable land, oil, minerals, rivers, climate, air quality and support a variety of primary, secondary and tertiary industries are (a)   ?

These resources provide physical power, mental talents and other spcialised services that are used in the production process?

• Capital

• Labor

• Natural

• Tertiary

Markets generally operate best or most efficiently when they are

• Perfect Monopoly

• Oligopoly

• Monopolistic competition

• Free or perfect/pure competition

Miss Wessel and Miss Vegara were both born in Brisbane

• True

• False

Markets work best when the following preconditions are met...?

• Government planning, regulation and control and relatively few sellers

• One seller controls the output of the industry. The firm is the price marker and has a lot of market power given there is no substitute.

• Relatively few large sellers who control the industry with some potential for collusion and abuse of the market

• Firms have no market power or control over prices, consumer sovereignty, resources are mobile, and firms have ease of entry and exit.

The three basic economic questions are

• What and How Much to Produce, When to Produce and For Whom to Produce

• What and How Much to Produce, How to Produce, Where to Produce

• What and How Much to produce, How to Produce, and For Whom to Produce

• What and How Much to Produce, How to Produce and For Who to Produce

The central problem in economics. Society's unlimited wants on one hand, relative to limited resources on the other is known as (a)   ?

Sources of unlimited wants and needs is made more severe by

• Many needs and wants recur and population decline

• Many needs and wants recur, population growth, advertising, obsolescence, expectation of material things

• Disuse

• None of the above