Econ Unit 1B

An economy in which the individuals own the factors of production and decide for themselves the answers to the basic economic questions is what kind of economy? 

• Traditional 
• Market 
• Command 
• Centrally Planned 

The economy of the Bushmen of the Kalahari Desert the people follow the examples of their ancestors.  This is what kind of economy? 

• Traditional 
• Market 
• Command 
• Centrally planned 

The Country of Korea, who has a dictator that makes most of the economic decisions is what kind of economy?

• Traditional 
• Market 
• Command 
• Centrally Planned 

The Federal Government of the United States has a progressive tax system which takes more taxes from individuals as their income rises.  This money is used to support many individuals with food, housing and medical services. This function of government in a market economy is called: 

• resolving market structures 
• efficiency and stability
• protecting property rights
• redistributing income

Bowdon Clothing Manufacturing decided several years ago to give up making suits for the public to take a contract with the Federal Government to produce Military Uniforms. Which eceonomic question did they answer. 

• What to produce? 
• How to Produce 
• For whom to produce
• All of the above 

the sum of skills, abilities, and motivation of people

• human capital 
• specialization
• capital goods
• natural resources

An economy that has components of traditional, command and market economies:

• Command
• Mixed
• Market
• Traditional

Really, most countries have a mixed economy with one part of the mix being dominant.

• True
• False
• Impossible
• Never

The USA has mostly a _____________ economy.

• Command
• Traditional
• Mixed
• Market

Most communist countries have a _______________ economy.

• Command
• Market
• Traditional
• Mixed