PFET-Week 1 in Review

There are three big questions that every economic system must answer. They are:

• Sell now, sell tomorrow, or sell yesterday

• What to produce, For whom to produce, how to produce

• Where, when, why

• How to produce, where to produce, with what

An example of microeconomics is

• Choosing to have products made in the US or China

• Choosing to wear tennis shoes or dress shoes

• Choosing to eat Chik Fil A or Burger King

• Choosing to paint your room red or blue

The advantages of a traditional economic system is:

• economic roles are set and predictable

• lower standard of living

• changes every day

• the government is involved

Complete this sentence: I need______

• Gucci, Chanel, and Louboutin

• to eat at a 5 star restaurant

• television and telephone

• food, clothes, shelter

The United States has a ______ economy.

• traditional

• command

• capitalism/market

• mixed market

Scarcity is_____

• having everything that you want and unlimited resources

• having very little and limited resources

• having unlimited wants but limited resources

• having nothing that you want and no resources

A country that has a command economy is____

• Russia

• United States

• Denmark

• North Korea

Macroeconomics focuses on___________

• Individuals that make economic decisions

• the big picture, growth and development; choices made by large groups

• choices made by countries only

• day-to-day activities

A disadvantage of a capitalism/market economy is____

• doesn't meet wants

• lack of progress

• no incentives

• workers and businesses face uncertainty

An example of opportunity cost is _______

• If I attend class then I can't go to work.

• If I attend class then I can go to sleep as well.

• If I don't attend class then I can't go to work.