Economic Systems and Concepts

The governor of Maryland chose to cut spending on road construction in order to increase spending for school construction.

Which economic principle is best demonstrated by this decision?

• Benefit

• Opportunity Cost

• Scarcity

• Command

1) A company focuses on building things that benefit the wealthiest in the country.

Which basic economic question is being directly addressed by this decision?

• How to produce?

• What to produce?

• For whom to produce?

• When to produce?

1) Fidel Castro orders that all factories must start producing military weapons instead of normal appliances and cars.

Which economic system is being followed?

• Market

• Mixed

• Traditional

• Command

Newfoundland voted on whether to continue importing oil or switch to solar power in order to power its shipbuilding industry.

What basic economic question did Newfoundland answer?

• What to produce?

• How to produce?

• For whom to produce?

• When to produce?

Which of the following is NOT an advantage of a mixed economy?

• Government ensures businesses act fairly

• Government gives tax cuts to small businsses

• Government help protects customers

• Government enforces strict rules and regulation on businesses

Families grow their own vegetables and raise their own animals or hunt to get meat.

What economic system does this represent?

• Command

• Market

• Mixed

• Traditional

When there is not enough of an item to satisfy all wants and needs of a society, this is known as what?

• Benefit

• Opportunity Cost

• Scarcity

• Choices

After you have made an economic decision, the most prefered option you gave up is known as what?

• Opportunity Cost

• Benefit

• Scarcity

• Economics

In a market economy, who decides how resources are used and distributed?

• The government

• A central planning commission

• Business owners and consumers

• A tribal leader

Why do some nations adopt command economies during wars?

• To increase the standard of living

• To increase consumer goods

• To focus resources on essential industries

• To discourage the growth of monopolies