4.12 ECO 102

Multiple Choice

Which term best describes the economic system in the United States?

• market economy

  
  

• command economy

  
  

• traditional economy

  
  

• mixed economy

  
  

Multiple Select

What are the benefits of specialization?

• Producers can focus on creating a quality product.

  
  

• The production process becomes slower.

  
  

• Businesses earn more money by selling a variety of goods.

  
  

• The cost of production is decreased.

  
  

Multiple Choice

What will most likely happen if Lisa provides additional education and training to her employees?

• Production will increase. Lisa's employees can use what they learned in training to work more efficiently.

  
  

• Production will stay the same. The training did not impact the way Lisa's employees work.

  
  

• Production will decrease. Lisa's employees will spend more time training than completing their daily tasks.

  
  

Multiple Choice

Question

Lisa's Cake Shoppe only has one mixer. That means she can only mix batter for one flavor of cake at a time.

What should Lisa do to increase productivity?

• Lisa should only offer one flavor of cake.

  
  

• Lisa should hire more employees.

  
  

• Lisa should invest in capital resources by buying a new cake mixer.

  
  

Multiple Choice

based on the principle of supply and demand

• Market economy

• Command economy

• traditional economy

Multiple Choice

guided by customs and norms

• Market economy

• Command economy

• traditional economy

Multiple Choice

controlled by a central government

• Market economy

• Command economy

• traditional economy

Multiple Choice

Which situation is an example of economic interdependence?

• A restaurant owner decides to only make recipes that share common ingredients.

  
  

• A country with a command economy refuses to trade with a country that has a market economy.

  
  

• A mechanic works at a repair shop that also functions as a hair salon.

  
  

• One nation produces car parts, then sends them to another nation to be assembled.

  
  

Multiple Choice

Countries that trade with one another are more likely to _____ over disagreements.

• find peaceful resolutions to

• go to war

Multiple Choice

limits on the amount of imports or exports to or from another country

• quotas

• tariffs

• natural barriers

Multiple Choice

taxes placed on imports from another country

• quotas

• tariffs

• natural barriers

Multiple Choice

barriers not imposed by the government, like language and distance

• quotas

• tariffs

• natural barriers