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1.4 Types of Goods and Services

Total questions: 34

Worksheet time: 27mins

Name
Class
Date
1.
Good or a service? Buying a pair of new shoes
a)
good
b)
service
2.
A mechanic fixing your car is a good or a service?
a)
service
b)
good
3.

What is a service?

a)

going to Temple

b)

buying something

c)

an action that a person does for someone else

4.
A good is an object that someone wants or needs and that can be held or touched. True or false.
a)
true
b)
false
5.
a)
good
b)
service
6.
a)
good
b)
service
7.
a)
good
b)
service
8.
a)
good
b)
service
9.
a)
good
b)
service
10.
a)
good
b)
service
11.
You get a hair cut. 
a)
Good
b)
Service
12.
You buy a book from a garage sale.
a)
Good
b)
Service
13.
If the demand for a good increases when people's incomes increase, 
a)
the good is an inferior good
b)
the law of demand is violated
c)
the good's demand curve must be upward sloping
d)
the good is a normal good
14.
If the demand for used cars decreases after the price of a new car falls, used cars and new cars are
a)
inferior goods
b)
substitute goods
c)
complementary goods
d)
normal goods
15.
If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are
a)
a normal good
b)
an inferior good
c)
a substitute good
d)
a complement to video cameras
16.

When the price of tea increases, the demand for coffee increases. What type of goods are tea and cookies?

a)

normal

b)

inferior

c)

substitutes

d)

complements

17.
Products that tend to be used together 
a)
complements 
b)
substitutes
c)
goods
d)
needs 
18.
Products that can be used in a place of other products 
a)
substitutes 
b)
goods 
c)
substitution effect 
19.

If demand for a good decreases when people's income increases

a)

The good is an inferior good

b)

The law of demand is violated

c)

The good is a normal good

d)

The good's demand curve is upward sloping

20.

If the demand for flat screen TV's increase when consumers income rise, then TV's are

a)

A normal good

b)

An inferior good

c)

A substitute good

d)

A complement good

21.

Which of the below is correct when talking about inferior goods?

a)

Demand is unaffected by change in income

b)

Demanded increases when income increases

c)

Demand increases when income decreases

d)

Demand stays the same when income decreases

22.

If the demand for a good increases when price of the same product increases,

a)

Normal Goods

b)

Inferior Goods

c)

Giffen Goods

d)

Free Goods

23.

An Apple iPad and Samsung Galaxy Tab are the example of ...............

a)

Giffen Goods

b)

Inferior Goods

c)

Substitute Goods

d)

Complement Goods

24.

An Apple iPhone and Apps are the example of ...............

a)

Giffen Goods

b)

Inferior Goods

c)

Substitute Goods

d)

Complement Goods

25.

Which of the following is an example of a private good?

a)

School WiFi

b)

Park bench

c)

Netflix

d)

Apples

26.

What is the free rider problem?

a)

scarcity even when you pay for a good

b)

Reaping all the benefits without contributing

c)

Common goods that don't have a price

d)

none of the above

27.

Which of the following explains why a city fireworks display on the Fourth of July is provided as a public good?

a)

Fireworks displays usually take place in a public area.

b)

Fireworks are a scarce resource.

c)

Nonpayers cannot be prevented from seeing the fireworks.

d)

Each consumer pays a fee to see the fireworks.

28.

Excludability and Rivalry are the features of ....................

a)

Substitute Goods

b)

Complement Goods

c)

Private Goods

d)

Public Goods

29.

A table and chair are examples of free goods.

a)

True

b)

False

30.

Free goods are created by man.

a)

True

b)

False

31.

Economic goods must be paid for by the consumers.

a)

True

b)

False

32.

Economic goods are available and abundant in nature.

a)

True

b)

False

33.

Free goods does not require human efforts to produce.

a)

True

b)

False

34.

Examples of free goods are: sunlight, air, seawater.

a)

True

b)

False