Considering both product markets and resource markets, most economic decision makers participate in the economy as both buyers and sellers.
a. True
b. False
QUESTION 2Goods and services are exchanged in
a. product markets
b. resource markets
c. inventory markets
d. classified markets
e. government markets
QUESTION 3Unlike a service, a good
a. is desirable
b. uses resources to satisfy wants
c. is physical and tangible
d. is abundant and free
e. is a resource
QUESTION 4A good or service is considered scarce if
a. any quantity of it can be consumed at a zero price
b. the amount people desire exceeds the amount available at a zero price
c. the amount people desire exceeds the amount available at any price
d. the amount people desire is less than the amount available at any price
e. the amount people desire is less than the amount available at a zero price
QUESTION 5The expression There's no such thing as a free lunch means
a. that even if the lunch is free, we pay for it in extra calories
b. that resources used up in producing the lunch are not available to satisfy other wants
c. the same thing as The best things in life are free
d. you can eat only if you work first
e. neither sea water nor air is free
QUESTION 6The expression There's no such thing as a free lunch means that
a. services may be free, but goods are never free
b. even if it has a price of zero, a good or service has a cost
c. charitable organizations should not serve free lunches to the poor
d. poor people are really the ones who pay for their allegedly free lunches
e. someone has to pay the market price for a good or service
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