Intro to Business - chapter 2 - Economic Resources and Systems

1. An Economic Resource and an Economic System are basically the same.

• True
• False

5. How many factors of production are there?

• a. 1
• b. 2
• c. 3
• d. 4

7. There are 4 different types of economies. 

• True
• False

9. A MARKET economy and a COMMAND economy do business the same way. 

• True
• False

14. Competition between similar businesses is a basic characteristic in a Command Economy.

• True
• False

13. The EQUILIBRIUM price is the point where the quantity demanded and the quantity supplied meet. 

• True
• False

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