Introduction of Principles of Business II

Which term best describes an economy?

• The process of buying and selling between people

• A place where economics take place

• An organized system where resources are allocated for production, distribution and consumption

• A system where people moved from place to place according to the conditions that suited them best

Which of the following is NOT a type of economic system?

• Subsistence economy

• Traditional economy

• Command economy

• Pluralistic economy

Where people make their own products needed to survive.

• Traditional economy

• Command economy

• Planned economy

• Market economy

Identify all the features of a subsistence economy:

• Strong sense of tradition and community

• In balance with natural environment

• Many choices for individuals

• Use simple tools

In this type of production there is surplus that can be traded:

• Direct production

• Indirect production

• Import production

• Simple production

Mikel grows cassava and fresh seasoning for his personal use:

• Direct production

• Indirect production

• Import production

• Simple production

Dimitri grows Corn and Pigeon Peas for his family use but also sells excess to the local supermarket

• Direct production

• Indirect production

• Import production

• Simple production

Sam loves science and wants to become a doctor but he is learning how to make clay bricks like his father and grandfather.

• Free Market
• Traditional
• Mixed
• Command

Katia is an accountant in a government run business where she was placed after graduation.

• Command
• Traditional
• Free Market
• Mixed

Sally works in a private company that has to follow government rules for public safety.

• Free Market
• Command
• Mixed
• Traditional