Which of the Following Is the Best Example of a Pure

question 125

Multiple Choice

Which of the following is the best example of a pure service?

• A) counseling
• B) oil change
• C) heart transplant
• D) restaurant meal
• E) college course

Understand how corporate shares influence the rights and responsibilities of stockholders.

Understand the effects of removing price floors and ceilings on market conditions.

Grasp the cause and effect of changes in the supply of loanable funds on interest rates.

Identify the outcomes of price controls such as price ceilings and floors on market surplus or shortage.

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Definitions:

Circular-Flow Diagram

An illustrative depiction of the economy, highlighting the movement of currency among firms and households within different markets.

Goods and Services

Products and activities that fulfill the needs or desires of consumers, with goods being tangible objects and services being intangible activities.

Factors of Production

The inputs used to produce goods and services, typically classified into four main categories: land, labor, capital, and entrepreneurship.

Money

A medium of exchange that facilitates trade, serves as a unit of account, a store of value, and can be in the form of coins, notes, or electronic.