Economic Resources and Expenditure Quiz

Gold is a finite resource with limited availability.

Investment expenditure refers to spending on assets to improve future production.

Money is a medium of exchange and not directly involved in the production process.

Revenue expenditure refers to spending on recurring costs that do not directly contribute to asset formation.

Capital resources, unlike labor and land, are not inherently unlimited in availability.

Investment expenditure refers to spending on assets expected to yield benefits over time, such as raw materials for production.

Public goods are non-excludable, meaning individuals cannot be effectively excluded from use.

Opportunity cost represents the value of the next best alternative forgone when a decision is made.

Positive externality occurs when an activity generates benefits for third parties not directly involved.

GNP measures the total economic output of a country's residents, regardless of where they are located.

Negative externality occurs when an activity imposes costs on third parties not directly involved.

CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Elasticity of demand measures how demand for a good changes in response to changes in its price.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Total revenue is the product of the price per unit and the quantity sold.

Marginal cost measures the change in total cost resulting from producing one additional unit of a good.

Average revenue is the total revenue divided by the quantity sold.