Economic Principles

Which of the following is a basic question of economics?

• What will be produced?
• How much will be produced?
• How will it be produced?
• Where will it be produced?

Which economic system is based on tradition and historical precedent?

• Market
• Command
• Traditional
• Mixed

Cuba and North Korea are examples of which type of economy?

• Mixed
• Free Market
• Traditional
• Command

Money made minus expenses is called--

• Price
• Choice
• Profit
• Consumer sovereignty

The inability to satisfy all wants at the same time is called?

• Scarcity
• Prodcution
• Consumption
• Resources

Tina must choose between going to the movies or buying a new game. She chooses the game. Going to the movies is Tina's--

• Choice
• Opportunity cost
• Consumer soveriegnty
• Competition

A _______________ economy is centrally planned and centrally owned by the government.

• Traditional
• Free Market
• Command
• Mixed

In a mixed economy who makes the decisions for the public sector?

• Government
• Businesses and Individuals
• The state
• The people

In a mixed economy who makes the decisions for the private sector?

• The people
• The government
• Businesses and Individuals
• The state

The type of economy is based on the amount of government's involvement.

• True
• False