Econ Honors - Extra Credit 1

Which of the following is an economic system in which a central, governmental authority decides how to use a country's scarce resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget

What type of economy do most countries in the world have?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is NOT one of the three basic questions of economics when looking at economic systems? 

• What goods should be produced ?
• What is the price of the goods? 
• How should the goods be produced? 
• Who gets to consume the goods? 

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes

People who take a risk by starting a business, who are search of profits, are called what?

• President
• Entrepreneur
• Senator
• Factory Worker

Considered the Father of Capitalism, this person authored The Wealth of Nations. 

• Karl Marx
• Adam Smith
• George Washington
• Milton Friedman 

This economic system provides the best opportunity for entrepreneurial success, and historically has the greatest success in improving standards of living, and increasing prosperity? 

• Command Economy
• Traditional Economy
• Market Economy/Capitalism
• Mixed Economy

The foundation of free market economics, buyers and sellers WILLINGLY engage in market transactions because BOTH benefit from the transaction. 

• TINSTAAFL
• scarcity
• private property
• voluntary exchange