Question:

5 Free goods and economic goods are consumed in Poland. In 2020, demand for both economic goods and factors of production increased in Poland. For example, Polish consumers demandedmore football shirts and the Polish government increased its spending on housing for the country’s population.
(a) Identify two free goods. [2]
(b) Explain two influences on demand for factors of production. [4]
(c) Analyse the effect of an increase in demand for football shirts on demand for football shorts
and demand for basketball shirts. [6]
(d) Discuss whether or not an increase in government spending on housing would benefit an
economy. [8]

Sample Answers: