Econ CE11-14

What type of economic system does the United States have?

• Traditional
• Free Market
• Command
• Mixed

Rivalry between producers of a good or service results in better quality goods and services at a lower price.  This is called ___________.

• free market
• competition
• profit
• consumer sovereignty

How does competition help consumers?

• More items at higher prices
• More stores carry the same items
• Determines the amount of profit
• Determines quality and pricing expectations

Which condition would lead to the highest prices?

• Low supply, high demand
• high supply, high demad
• High supply, low demand
• Low supply, low demand

In this type of economy, the government places control on businesses, but the individual decides what to make. 

• Mixed
• Market
• Command 
• Traditional

Which of the following is NOT one of the questions every economic system must answer?

• How to produce?
• What to produce?
• Who will produce?
• Whom to produce for?

Riddle:  I give consumers control of the economic market.  Consumers determine through buying goods and serices what goods and services will be produced. I am called -

• competition
• business expansion
• profit motive
• consumer sovereignty

Worldwide markets in which the buying and selling of goods and services by all nations takes place defines a(n) ____________.

• command economy

• free market economy

• global economy

• traditional economy

Which of the following is NOT a reason that states and nations trade?

• to obtain goods and services they can't produce or produce efficiently themselves

• to create jobs

• to sell goods and services to other countries

• to lower their profit on goods and services

What is the benefit of technological innovation?

• lowers the cost of production

• raises the cost of production

• cost of production stays the same