Unit 1 Quiz

Canada has a universal healthcare system, providing government-funded medical services to all citizens. However, the vibrant private sector helps to push an economy that is one of the world's most successful. Intense and frequent trade with the United States provides the country with great wealth.

These facts provide evidence that Canada has a

• mixed economy

• market economy

• traditional economy

• command economy

Juan realizes that if he studies an extra hour for his test, he will score five points higher. For each extra hour spent studying, he is getting one hour less sleep. When deciding whether to spend an additional hour studying or sleeping, Juan is engaged in what economic activity?

• bartering

• marginal analysis

• market transactions

• trade negotiations

Competition and free enterprise are most common in which type of economic system?

• market

• command

• planned

• traditional

A headline reads: "High Tech Firms Begin Producing New Generation of Computers." What basic economic question is being addressed in this headline?

• how to produce

• what to produce

• when to produce

• for whom to produce

Which of these is a correct description for one of the ways in which a command economy differs from a market economy?

• Market economies discourage free enterprise.

• In a market economy, the government sets prices.

• Command economies tend to have a higher per capita GDP

• In a command economy, individuals have less economic freedom.

Which is a fundamental questions every society must answer?

• What goods and services are to be produced?

• How are the goods and services to be produced?

• Who will get the goods and services that are produced?

• All of the above

Competition and free enterprise are most common in which type of economic system?

• traditional

• market

• communist

• planned

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

• Mixed

• Market

• Command

• Traditional

Which provides the greatest incentive for entrepreneurs to take risks?

• prices

• inflation

• profits

• interest

A production possibilities curve shows

• the technological changes that improve production

• choices a person makes between items

• all of society’s resources

• the combination of goods that can be produced with a set of resources