Econ Honors - Economics Systems and Decisions - Pd. 1

Which of the following is an economic system in which a central, governmental authority decides how to use a country's scarce resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

What is human capital?

• Taxes collected from a country's workers
• Money paid to workers for producing goods
• Skills and education workers have
• The amount of goods sold in foreign trade in a year

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget

What type of economy do most countries in the world have?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is NOT one of the three basic questions of economics when looking at economic systems? 

• What goods should be produced ?
• What is the price of the goods? 
• How should the goods be produced? 
• Who gets to consume the goods? 

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes

In this market, businesses buy resources they need to produce goods and services.

• factor market
• stores
• product market
•  businesses

People who take a risk by starting a business, who are search of profits, are called what?

• President
• Entrepreneur
• Senator
• Factory Worker

Considered the Father of Capitalism, this person authored The Wealth of Nations. 

• Karl Marx
• Adam Smith
• George Washington
• Milton Friedman