Ch.2 Economics Systems and Market systems

Which of the following is NOT a basic economic question? 

• WHAT to produce 
• FOR WHOM to procue
• WHEN to produce
• HOW to produce

The United States is a pure market economy.

• True
• False

The government makes all economic decisions

• Traditional
• Command
• Market

Everyone has a set role defined by custom. 

• Traditional
• Command
• Market

Primary focus is self-interest

• Traditional
• Command
• Market

Adam Smith's "Invisible Hand"

• Traditional
• Command
• Market

Which two groups of people are represented in the circular flow model?

• Buyers and Sellers
• Producers and Consumers
• Government and Private Individuals
• Households and Businesses

There is no need for government in the marketplace

• Laissez Faire
• Capitalism
• Laissez Faire Capitalism
• Socialism

In this economic system, the economic system self-regulates itself based on supply and demand of goods and services, which determines the price:

• Traditional Economy
• Market Economy (Free Enterprise)
• Command Economy
• Mixed Economy

Government controls or dictates what is produced and other economic policy in this type of economy:

• Command Economy
• Traditional Economy
• Mixed Economy
• Market Economy (Free Enterprise)