Intro to Business - Chapter 2 Review

The three basic economic questions begin with each word except

• how 
• what
• who 
• why

economy systems are the methods societies use to distribute 

• income
• possessions
• resources
• wealth

in a market economy, economic decisions are made ___________

• at the top
• by individuals
• by industry leaders
• by the market place

The amount of money given or asked for when a service is bought and sold is called its ______

• cost
• price
• value
• worth

The quantity of goods that producers are willing to provide at various prices is called the ________

• quantity
• reserve
• stock
• supply

The quantity of goods that consumers are willing to buy at various prices is called the 

• demand
• purchase
• request
• sale

The point at which the quantity demanded and the quantity supplied meet is called the __________ price.

• break even
• compromise
• dynamic
• equilibrium

In a command economy, key economic decisions are made by 

• a central authority
• individuals
• market
• mixed

the United States is primarily a __________ economy

• command
• consumer
• market
• mixed

Another name for a market economy is a ___________ system

• competitive
• contemporary
• democratic
• free enterprise