Which types of good are distinguished from one another by the presence or absence of opportunity cost?

A demerit and merit goods

B economic and free goods

C inferior goods and normal goods

D private and public goods

A government decides to subsidise farms producing milk in its country. Which question about this decision is a normative question rather than a positive question?

A How much will milk production increase?

B How should essential products, such as milk, be produced?

C How will employment in the milk industry change?

D How will milk prices change?

A state-owned industry is sold to the private sector. The industry consists of a number of very large factories. Which is the most likely change in business organisation to result from this?

A from private company to public corporations

B from public company to public corporations

C from public corporation to public companies

D from public corporation to private companies

Which action is evidence that a country is a planned economy?

A A central bank plans an interest rate change.

B A government plans the allocation of all resources.

C A local authority plans a new library.

D A ministry of finance plans the annual budget.