Economics Final Review

Which economic system gives individuals the largest influence?

• traditional

• planned

• command

• market

which economic system is based on what has been done in the past

• traditional

• mixed

• market

• command

which economic system is influenced by government planning

• market

• capitalist

• command

• mixed

what do economists study?

• past civilizations

• social relationships

• government and how people choose leaders

• the production, distribution and consumption of goods and services

the motivation for starting a business in capitalism is to

• provide taxes

• provide jobs

• earn a profit

• help everyone become equal

a basic problem facing all societies is

• scarcity (lack of ) resources

• high unemployment

• high inflation

• low literacy rates

when an individual starts their own business they are called

• employee

• stock holder

• entrepreneur

• consumer

which defines opportunity cost of production

• using a resource in one capacity eliminates the ability to use it in another

• loss of potential profit in order to capture a larger market share

• streamlining production costs to maximize profit

• increasing expenses to expand production

one who makes purchases for personal use is a

• producer

• consumer

• economist

• manufacturer

an example of a natural resource is all of the following EXCEPT

• oil

• tree

• coal

• car