Econ Systems Quiz Review for Study Island

In a traditional economy, which of these determines what goods are produced?

• A.supply and demand

• B.custom and habit

• C.government and business

• D.politicians and bureaucrats

In a market economy, what determines for whom goods are produced?

• A.custom and tradition

• B.politicians and the bureaucracy

• C.government and the market

• D.supply and demand/Individuals

In a command economy, what determines for whom goods are produced?

• A.custom and tradition

• B.politicians and the bureaucracy

• C.government and the market

• D.supply and demand/Individuals

Using the chart, determine the impact of household savings on the nation's output of goods and services.

• A.Household savings usually boosts national output of goods and services.

• B.Household savings can boost goods and services to governments.

• C.Household savings mostly impacts the cost of goods and services.

• D.Household savings can slow down output of goods and services.

Advocates of a free market believe it leads to freedom and efficiency because it

• A.encourages a disciplined professional military.

• B.leaves political decisions to citizens and elected legislators.

• C.leaves economic decisions to entrepreneurs and consumers.

• D.encourages an independent news media.

Which is an example of circular flow from a business to a household?

• A.an individual receives an income

• B.an individual rents his or her property

• C.an individual buys stocks

• D.an individual pays taxes

In a command economy, how are decisions made about what goods and services to produce?

• A.Entrepreneurs, consumers, and government officials decide.

• B.The market decides.

• C.The government decides.

• D.Tradition, habit, and the customs of the community decide.

Which of the following is a characteristic of a traditional economy?

• A.The government subsidizes unprofitable businesses.

• B.Economic decisions are based on habits and customs.

• C.The government tells people which businesses they can run.

• D.People are free to choose any career that they want.

One of the objectives of a command economy is to ensure that everyone who is able to work has a job. This can be seen as an effort to achieve the broad social and economic goals of

• A.security and full employment.

• B.freedom and efficiency.

• C.equity and price stability.

• D.competition and profit.

Which of the following is true in a command economy?

• A.Business owners decide which goods to produce.

• B.Consumers have many economic choices.

• C.The government decides which goods are produced.

• D.The government makes no economic decisions.