PBMF Chapter 1

The government makes the economic decisions. What type of economy does this country have?

• Command

• Market

• Mixed

• None of the above

A market economy is based on supply and demand

• True
• False

What kind of resource is a tree?

• Natural (Land)

• Human (labor)

• Capital

• Entrepreneurial

A Building is what kind of resource?

• Natural
• Human
• Capital
• Entrepreneurial

Which of these is NOT a type of economy?

• market
• command
• mixed
• distributive

What is the most common type of economy?

• market
• command
• mixed
• socialist

A teacher is a natural resource?

• True
• False

What happens when the demand is high and the supply is low?

• The price goes up

• The price goes down

• the price stays the same

• you have reached equilibrium

Equilibrium means

• you are breaking even
• supply meets demand
• everybody is making the same amount
• none of the above

If you use a resource for one thing, you give up the ___________ to use it for something else.

• right
• opportunity
• authority
• willingness