Economic Module 1

In which type of economy are economic questions are answered on the basis of habit or customs? 

• Command Economy
• Market Economy
• Mixed Market Economy
• Traditional Economy

Expenses that do not change no matter how much a business produces are called _____________.

• Fixed Cost
• Variable Cost
• Marginal Cost
• Opportunity Cost

Workers' knowledge is a human resource.

• True
• False

What forces people and nations to make economic choices?

• abundance of goods
• desire for profit
• need for shelter
• scarcity of resources

The cost of the next-best use of your money or time when you choose to do one thing rather than another is known as _____________.

• Fixed Cost
• Revenue
• Opportunity Cost
• Marginal Cost

In the US, prices are established primarily though

• government regulations
• tax incentives 
• the decisions of major corporations 
• the forces of supply and demand

The extra income that results from selling one more unit of the output is called marginal revenue.

• True
• False

Consumers are the people or businesses that buy goods and services.  

• True
• False

The lost income from not taking a shift at work is an opportunity cost of studying for a test.  

• True
• False

In what type of economy, planners who work for the government answer the economic questions?

• Command Economy
• Market Economy
• Mixed Market Economy
• Traditional Economy