Economics Semester Test Review

Resources are allocated by the government only.

• Traditional

• Command

• Market

• Mixed

Marketing decisions are made by market conditions.

• Traditional

• Command

• Market

• Mixed

Allocation of resources is based upon ancient religious writings.

• Tradtional

• Command

• Market

• Mixed

Businesses and individuals own natural resources and capital goods.

• Traditional economy

• Command economy

• Market economy

• Mixed economy

Government controls business decisions extensively for the allocation of some resources but little over distribution of those resources.

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

China is a good example of this economic system.

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

Factors of Production include which of the following?

• land, labor, and capital

• technology products and entrepreneurship

• goods and services

• all of the products produced in an economy

It is easier to start your own business in a

• command economy.

• controlled economy.

• traditional economy.

• free enterprise system.

Using resources wisely so that people are better off economically is referred to as

• economic growth.

• opportunity cost.

• economic efficiency.

• standard of living.

Scarcity always exists because

• stores cannot stock enough merchandise to keep up with customer demand.

• factories sometimes have difficulty producing enough goods.

• there is not enough of all goods and services to satisfy everyone’s needs and wants.

• natural disasters, such as hurricanes and floods, destroy goods and property.