Economic Bads Are Items

question 12

Multiple Choice

Economic bads are items

• A) for which the produced quantity is less than the amount desired at a positive price.
• B) for which the desired quantity is less than what nature provides at a zero price.
• C) that individuals desire but which receive social disapproval.
• D) that receive social approval but which governments dislike.

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Definitions:

Commodity Prices

The market prices for raw materials or primary agricultural products that are traded on exchanges.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Interest Rates

The cost of borrowing money or the return earned on an investment, usually expressed as a percentage.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling.