Unit 1 Review

Front

Which of the following best describes a free enterprise economic system? Options: An economy based on one or a few of agriculture, hunting, fishing, and gathering. Barter and trade is often used in place of money; An economy where the market determines prices, products, and services rather than the government.; All citizens share equally in economic resources as allocated by a democratically-elected government; Most property and economic resources are owned and controlled by the state (rather than individual citizens)

Back

An economy where the market determines prices, products, and services rather than the government.

Front

North Korea’s economic system is an example of which type of system?

Back

Command

Front

Which economic system did Native Americans and early indigenous peoples most likely operate under? Options: Free enterprise, Market, Command, Traditional

Back

Traditional

Front

What is the fundamental economic problem faced by all societies, known as scarcity?

Back

Unlimited wants vs. limited resources

Front

Which of the following is the best example of a capital resource? Stock, Bond, iPhone, Austin, Texas

Back

iPhone

Front

In the circular flow model of an economy, which of the following best describes the role of households? They supply factors of production, such as labor, to firms and receive wages in return.

Back

They supply factors of production, such as labor, to firms and receive wages in return.

Front

An economic system is the means by which countries and governments distribute resources and trade goods and services

Back

True

Front

Economic choice

Back

Unlimited wants vs. limited resources—the fundamental economic problem faced by all societies

Front

Competition is

Back

a situation in a market in which firms or sellers independently strive for the patronage of buyers in order to achieve a particular business objective, usually to make a profit

Front

An incentive is

Back

thing that motivates or encourages one to do something, like a reward