Assessment 2 Test

If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy

• Traditional

• Market

• Command

• Mixed

An economic system is the method a society uses to distribute and produce goods/services

• Truth

• False

Place where buyers and sellers meet to exchange goods and services for money

• Market

• The Invisible Hand

• Free Enterprise

• The Way of Life

_____________ are a positive incentive for entrepreneurs to start a business despite the risks.

Which of the following best explains a mixed economy?

• Private ownership of factors of production; regulation of businesses by government

• Family customs and traditions determine what and how to produce a good

• Market exchanges answer all three of the big economic questions

• Government answers all three of the big economic questions

Property owned by individuals or companies, not by the government or the people as a whole is known as?

• Profit Motive

• Liquidations

• Factor Payments

• Private Property

Based on the passage, East Germany's government planned to transform its economy from: Click the magnifying glass for a better view.

• Traditional to mixed

• Market to mixed

• Command to mixed

• Command to traditional

Which of the following describes an advantage of a free market economy?

• Variety of goods and services

• Freedom of choice

• Innovation

• All of the Above

Which of the following describes a disadvantage of command economies?

• Encourages Innovation

• allows government to supply goods/services in marketplace

• inability to adjust to consumer demands/ chagning market conditions

• gives consumers freedom

_______________ is the force that drives people to act and consumers to purchase?