Hello. I would like to raise a few Economic Questions about free goods and economic goods.

How could I provide a better answer? Are they any wrong concepts or misleading words? Could more detailed points be included? Are these answers correct, especially the last one.

Thank you

1. Are my following statements True?

1 In Economics, Goods are anything we want.

2 In Economics, free goods are goods that the use of which does not incur a cost.

3Free tissues distributed on street are economic goods, as they are produced with limited resources.

4 Free tissues distributed on street are economic goods, as more pedestrians take them( Is this statement false? Or the above statement statement 3 is better?)

5 Production takes place when a teacher marks test scripts at home.

6. Consumption takes place when a person plays football on Sundays.

7. Paul works as a clerk in a company, thus he is regarded as a/an ___ within the circular flow.(household, firm, money flow or consumer? ) Among these 4 choices is household the best answer?

8. Which of the following is usually regarded as a 'bad' in Economics?- Sources of pollution

9. Within the circular flow, a frim make production decisions.

Part 2

When will 'old books' regarded as: (i) bads and (ii) goods ? (2 points)

(ii) They will be regarded as bads when people prefer not to have them. For example, they are very dirty, torn damaged pages, people find those books useless, people prefer not to have them.

(ii) They will be regarded as goods when it can satisfy human wants and people prefer to have some rather than none. For example, when they are clean and tidy, people find those books useful, it can satisfy human wants.

Supermarkets sometimes offer free samples of foods for tasting. Are they free goods in Economics? Why? (2 points)

No, they aren't. They are produced from scarce resources which have alternative uses. More of them are preferred. More of them are preferred (Is the last sentence correct?)

What are the roles played by households within the circular flow? (2 points)

Households play the role as the basic unit of consumption. In the real flow, the household buys final goods and services from the firm in the product market and supplies factors of production to the firm in the factor market,

In the money flow, the household spends on final goods and services, (household consumption expenditure), becomes the revenue of the firm. The household also receives factor income from the firm through the factor market.

What are the roles played by firms within the circular flow?

Firms play the role as the basic unit of production. In the money flow, it receives households' consumption expenditure as firm's revenue and pays the cost of production (household receive it as factor income) to the household. In the real flow, a firm supplies final goods and services to the product market, while it receives factors of production from the household.

Sam is the owner of a hair salon. He also provides hairstyling services. During his spare time, he is fond of watching films in cinemas. Within the circular flow, what are the roles Sam plays? Explain. ( 4 points)

Firstly, he plays the role as a firm, basic unit of production as he provides hairstyling services to customers in the salon. This is an act of production, turning inputs, or factors of production, into goods or services. Also, this is supplying ''final goods and services'' from the firm to the household in the circular flow.

Secondly, he plays the roles as a household, basic unit of consumption, when he is watching films in cinemas. Watching films in a cinema is an act of consumption. He receives the service of ''watching films'' which is ''final goods and services'' in the real flow.

How could I explain it in more detail in accordance with the (attached image) ? Thank you