Grade 11 Circular Flow

What are economic goods?

• Tangible goods that are scarce and have a price.

• Tangible goods that are unlimited and free.

• Services that are easily accessible and free.

• Intangible goods that are abundant and have no value.

Differentiate between economic goods and free goods.

• Economic goods are always of low quality, while free goods are of high quality.

• Economic goods are only available in developing countries, while free goods are only available in developed countries.

• Economic goods are free and unlimited in supply, while free goods have a price and are limited in supply.

• Economic goods are limited in supply and have a price, while free goods are unlimited in supply and do not have a price.

Explain the concept of economic services.

• Economic services are intangible products provided by businesses to satisfy the needs and wants of consumers.

• Economic services are not influenced by supply and demand.

• Economic services are physical products provided by businesses to satisfy the needs and wants of consumers.

• Economic services are only available to wealthy individuals.

Provide examples of economic goods.

• Water, sunlight, soil

• Animals, plants, minerals

• Food, clothing, cars, electronics

• Rocks, trees, air

How are economic goods different from consumer goods?

• Economic goods are cheaper than consumer goods

• Economic goods are goods that are scarce and have a price, while consumer goods are goods that are used by consumers to satisfy their needs and wants.

• Economic goods are always in surplus, while consumer goods are always in shortage

• Economic goods are only used by businesses, while consumer goods are only used by individuals

What is the significance of economic goods in the circular flow of income?

• Economic goods are only important in the initial stages of the circular flow of income

• Economic goods only benefit the producers in the circular flow of income

• Economic goods have no impact on the circular flow of income

• Economic goods are essential for the production and consumption activities in the circular flow of income.

Discuss the role of economic services in the economy.

• Economic services contribute to the overall economic growth by facilitating the exchange of goods and services, providing employment opportunities, and contributing to the overall economic growth.

• Economic services have no impact on overall economic growth

• Economic services do not contribute to employment opportunities

• Economic services hinder the exchange of goods and services

Explain the concept of quantitative elements in the context of economic goods and services.

• Geographical elements such as location and distribution

• Psychological elements such as consumer preferences and emotions

• Quantitative elements in the context of economic goods and services refer to the measurable aspects such as quantity, price, and value.

• Qualitative elements such as color and texture

How do quantitative elements contribute to the circular flow of income?

• Quantitative elements contribute to the circular flow of income by impacting the stock market performance.

• Quantitative elements contribute to the circular flow of income by influencing the flow of goods, services, and money between households and firms.

• Quantitative elements contribute to the circular flow of income by influencing the government's fiscal policy.

• Quantitative elements contribute to the circular flow of income by affecting the exchange rate between different currencies.

Discuss the impact of quantitative elements on the production and consumption of economic goods and services.

• Quantitative elements have no impact on the production and consumption of economic goods and services

• Quantitative elements only impact the production of economic goods and services, not consumption

• Quantitative elements such as demand, supply, price, and production costs directly impact the production and consumption of economic goods and services.

• Quantitative elements such as demand and supply have no relation to production costs