Free goods and economic goods are used in Poland. In 2020, demand for both economic goods and factors of production rose in Poland. For instance, Polish consumers wanted more football shirts, and the Polish government raised its expenditure on housing for the nation’s population.
(a)[2]
Identify any two free goods.
(b)[4]
Explain two factors that influence demand for factors of production.
(c)[6]
Analyse the effect that a rise in demand for football shirts has on demand for football shorts and on demand for basketball shirts.
(d)[8]
Discuss whether an increase in government spending on housing would be beneficial for an economy.
Worked solution & mark scheme
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