Economic Systems Review

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Enterprise

• Producer

Under which economic system would factors of production most likely be owned by a government?

• Command

• Market

• Mixed

• Traditional

Which statement best describes the difference between a market economy and a traditional economy?

• In a market economy, all decisions are made by the government

• In a market economy, decisions are never based on supply and demand

• In a traditional economy, decisions are based on habit and custom

• In a market economy, all decisions are made by socialists

Which of the following is true in a command economy?

• The government decides which goods are produced

• Business owners decide which goods to produce

• The government makes no economic decisions

• Consumers have many choices

Which of the following is NOT true in a mixed economy?

• Mixed economies rarely have a currency

• Mixed economies have some personal freedom

• Mixed economies have some government control

• Mixed economies comprise most of the economies in the world

Something that is bought or sold is known as a...

• Good

• Service

• Need

• Collectible

Something that you pay someone to do for you is known as a...

• Service

• Good

• Collectible

• Luxury

Which of the following is NOT true in a Traditional economy?

• Traditional economies can only be found in large, populous countries

• Traditional economies have no government

• Traditional economies have no money

• Traditional economies are based on custom and habit

Which of the following is NOT true in a Free Market economy?

• The government regulates everything

• Decisions are based on supply and demand

• Goods tend to be more creative and of a better quality

• Individuals have more choice

Supply and demand is....

• An economic concept that states that the price of a good rises and falls depending on how many people want it and depending on how much of the good is available

• Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference.

• In short supply

• An economic and political system in which the factors of production are owned by the public and operate for the welfare of all.