ECON 2.1

Societies embrace various economic systems to deal with fundamental problem of ___________.

• scarcity

• abundancy

• new businesses

• government

The way 19th century Inuit divided the "spoils of the hunt" demonstrates a ______________ economy.

• market

• command

• traditional

• cryptocurrency

In a __________ economy, questions of what ,how , and for whom to produce are answered by the buying and selling activities of individuals.

• market

• command

• traditional

• cryptocurrency

In a _______ economy, production questions are answered by the government

• market

• command

• traditional

• cryptocurrency

____________ is a system in which government controls some, but not all, productive resources.

• Capitalism

• Socialism

• Traditionalism

• SpongeBobism

Which statement describes the disadvantages of a command economy?

• Items tend to be produced solely for the sake of profit

• It cannot "change direction" easily if the need arises to do so

• it does little to help the less advantaged obtain the goods and services they need

• Nothing stops the government from producing things that people don't need or want.

How is the principle of "There Is No Such Thing As A Free Lunch" illustrated in a socialist economy

• Socialist economies tend to collapse when they become to large

• The marketplace in a socialist economy are free for anyone to enter

• Socialist policies offer advantages to the wealthy at the expense of those less well-off

• Socialist economies tend to offer extensive government services but have very high tax rates

Which of the following is a disadvantage of a market economy?

• it sustains a high degree of uncertainty

• it restricts personal freedom

• it discourages creativity and new ideas for doing things

• it does not allocate resources as efficiently as other types of economies

Which of the following states an advantage of a traditional economy?

• property rights are based on tradition

• creativity and original thoughts are rewarded

• everyone knows exactly what their function is

• There's a bureaucracy that decides how resources are used

What kind of economy offers uniformity in wages regardless of individual productivity?

• all economies

• traditional economies

• command & socialist economies

• market & free enterprise economies