ECS1601 Assignment 8 2024, correct questions and answers and explanations. Assistance with assignments or to get latest exam materials, kindly email me at .
Which of the following best describes natural resources?
a. They can be replaced.
b. They are unlimited in supply.
c. They are remunerated by rent.
d. They consist of machines, buildings, and tools.
Answer: c. They are remunerated by rent.
Explanation: Natural resources are primarily compensated through rent, as opposed to
labor or profits, distinguishing them from other types of economic resources. Unlike capital
goods such as machines, buildings, and tools—which are often remunerated through
interest or profits—natural resources are tied to the land and are typically compensated by
rent paid to landowners. This rent reflects the value derived from the limited availability and
utility of natural resources, which are not always replaceable or unlimited in supply.
Question 2
Which of the following statements about the circular flow of production, income, and
spending is/are true?
(1) Firms are sellers in the factor market and buyers in the goods markets.
(2) In the real sector, both factors of production and goods and services are traded.
(3) In the circular flow of economic activity, the financial sector operates independently of the
real sector.
(4) Households are both sellers and buyers in the flow of economic activities.
a. (1) (4)
b. (4)
c. (1) (3) (4)
d. (2) (3)
Answer: a. (1) (4)
Explanation: In the circular flow model of economic activity, firms act as sellers in the factor
market, where they provide factors of production, such as labor and capital, to households.
In turn, they become buyers in the goods market, purchasing goods and services produced
by firms. Households, on the other hand, participate as both buyers and sellers—selling their
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ochiengglorious5. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.60. You're not tied to anything after your purchase.
