Economics Review 2

Which is a central characteristic of a free market economy?

• The government owns the means of production.

• All wage earners are paid the same amount.

• Labor unions are prohibited.

• Businesses are driven by the desire for profits.

Which group has the greatest influence in determining what goods and services will be produced in a communist economic system?

• Farmers

• Government officials

• Consumers

• Business leaders

Which of the following two methods of production are most commonly associated with a traditional economic system?

• Subsistence agriculture and some trade

• Commercial industry and Market-Oriented Agriculture

• Market oriented agriculture and subsistence agriculture

• Cottage industry and commercial industry

The four types of economic systems are: 

• Traditional, Command, Mixed, & Market
• Traditional, Command, Combined, & Market
• Communism, Capitalism, Free Market, and Macroeconomics
• Microeconomics, Macroeconomics, Individual, and Traditional.

Tony Romo, quarterback for the Dallas Cowboys NFL team, would be considered which one of the 4 economic resources?

• Land 
• Labor  
• Capital  
• Entrepreneurship

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes

In this market, businesses buy resources they need to produce goods and services.

• Resource market
• stores
• product market
•  businesses

Michael has $10; he wants to see the new Star Wars movie and go to the trampoline park. He decides to go to the trampoline park with some friends. What is his opportunity cost?

• the admission price of the trampoline park
• the time spent at the trampoline park
• the amount of gas used to drive to the trampoline park
• the value of viewing the movie

In Madison, you can find many _________, or places to buy goods.

• competition

• income

• imports

• markets

What is a tariff?

• A tax on goods

• A product needed to run a company

• When you trade for what you need

• Improving on test scores