Economic Systems Quiz #1

SELECT ALL THAT APPLY: Which of these is an example of a scarce resource?

• Time

• Money

• Water

• Paper

Moana's village would be an example of a ___________ economy.

• Traditional

• Planned/command

• Mixed

• Free-market

A ______________ economy is guided primarily by custom, habit, and ritual.

• Traditional

• Planned/command

• Mixed

• Free Market

A _____________ economy is completely determined and controlled by a central planning authority or the government

• Traditional

• Planned/Command

• Mixed

• Free Market

A _____________ economy is driven entirely by voluntary exchange in markets

• Traditional

• Planned/Command

• Mixed

• Free Market

SELECT ALL THAT APPLY: The three factors of production are:

• Land

• Labor

• Capital

A _________ economy is a market-based system in which the government is involved to some extent.

• Traditional

• Planned/command

• Mixed

• Free Market

The vast majority of the world's economies are mixed - they are market based economies with some extent of government involvement.

• True

• False

The old Soviet-style planned/command economy doesn't really exist in its pure form anywhere in the modern world.

• True

• False

SELECT ALL: The Production Possibilities Curve (PPC) represents:

• The alternative ways to use an economy's productive resources

• The effects of scarcity, efficiency, and opportunity cost.

• An economy that only produces 2 goods

• Full, fixed resources & technology