ECONOMIC SYSTEMS

When it comes down to it, all economies are really..

• command

• market

• traditional

• mixed

In a "Command Economy" who controls the factors of production (all economic decisions)?

• the people (individuals)

• elected financial representatives

• the government

• all decisions are voted upon

Which economic system bases their economic decisions on what their people have always done in the past?

• mixed

• traditional

• command

• market

Which economic system features the individual (YOU) making the economic decisions?

• traditional

• mixed

• market

• command

If you spent only had $110 for end of year SR activities and chose to buy a Grad Night ticket, what would is the opportunity cost of your decision?

• buying the ticket

• the excitement of knowing you're going to Grad Night

• the sales tax

• going to prom

Democratic socialism is best describes as..

• closest to capitalism

• between communism and traditional

• based on customs and traditions

• between communism and capitalism

What system does the gov't have a "laissez faire" approach (hands off)

• communism

• authoritarian socialism

• democratic socialism

• capitalism

Production possibilities curves illustrate __

• choices consumers make

• choices society has made

• combinations of how many of 2 different products can be made

• the latest technology

According to Adam Smith, a free market economy is guided by the concept of:

• the "Invisible Hand"

• the gold standard

• gov't control of all property

• equally distributing wealth among workers

Which of these is most likely to encourage people to work, rather than stay home?

• increase aid to the unemployed

• decrease wages and benefits

• increase the incentives to work

• decrease work training programs