Teaching is an example of a:

a) natural resource

b) service

c) capital good

d) consumption good

Which of the following statements best describes the pluses and minuses of a market economy?

a) It suffers few downturns in economic activity, but may subject workers to fairly frequent periods of unemployment.

bIt allows people freedom to choose occupations and change jobs, but is also characterized by great income inequality.

cIt produces the goods and services consumers want, but tends to waste resources in the process.

d)It distributes goods and services fairly, but may facilitate the concentration of economic power in the hands of a few.

Which of the following is not typical of a pure market economy?

a) private property

b) self-interested behaviour

c)government price controls

d) tax incentives

e) freedom to produce and consume goods and services