mid-term prepare-G9

A___ is someone who is not directly involved in an agreement or legal case but may still be affected by it.

When the production or consumption of a good causes harm or discomfort to others, it is known as______

__________ are the positive impacts that spill over to people not directly involved in the economic activity.

The expenses incurred by companies and individuals directly engaged in an economic activity are termed __________.

__________ include the total costs of an economic activity, accounting for both private costs and the costs incurred by the wider society.

The______ is the impact that one situation or problem has on another situation, often seen when economic activities have unintended consequences on third parties.

Which of the following statements is true about a demand curve?

• When the price falls, the quantity demanded falls

• When the price increases, the quantity demanded increases

• There is an inverse relationship between price and the quantity demanded

• When there is a price change, there is a movement shift the demand curve

What does the term 'social costs' refer to?

• The costs paid by the government for public services.

• The costs of an economic activity to society as well as the individual or firm.

• The costs incurred by an individual when buying a product.

• The costs associated with maintaining social media platforms.

Which of the following best describes 'private benefits'?

• Benefits that are available to public institutions.

• Benefits that are solely enjoyed by the government.

• Benefits that accrue to individuals within a market transaction.

• Benefits that are shared among all members of society.

Cars and car insurance are examples of which goods?

• Inferior goods

• Complementary goods

• Substitute goods

• Capital goods