Unit 8 Econ 101 Review

Which of the following is NOT a characteristic of a Traditional Economy?

• Economic decisions based on custom/historical precedent.

• People doing the same work that their parents and grandparents did.

• The government telling a farmer what to make

• A farmer selling beets because his/her grandparents farmed and sold beets.

__________ is the money that a business owner makes after all expenses have been paid. Example: A shoe sells for $100. The shoe cost $20 to make. The business owner made an $80 _________ from the shoe.

• Price

• Profit

• Sale

• Market

The interaction between supply and demand determine ________________.

• Sale

• Consumer Sovereignty

• Command Economy

• Prices of goods and services.

The process of combining resources to create goods and services is known as ____________.

• Consumption

• Production

• Creation

• Demand

The factors of production are the resources that take a(n) _________ and turn it into a(n) ___________.

• idea, good or service

• good or service, idea

• dog, cat

• cat, dog

Workers in a laboratory are considered what type of resource?

• Natural

• Capital

• Human

• Entrepreneur

Which of the following is an example of a capital resource?

• Oil

• Business Owner

• Chair

• Waitress

Ms. Mitat spent her evening creating a butter sculpture of Mr. Ski instead of reading a book called "How to Teach Kids Good n' Stuff". What was her opportunity cost?

• The value of the time she spent making a butter sculpture of Mr. Ski

• The value of the time she could have spent reading "How to Teach Kids Good n' Stuff"

• The cost of the butter sculpture supplies

• The cost of the book "How to Teach Kids Good n' Stuff"

In a ______________ economy, the government controls property and resources and consumers have a severe lack of choice in goods and services.

• Traditional

• Command

• Free Market

• Mixed

Each style of Economy answers three basic questions. Choose the THREE questions.

• How will it be produced?

• What will be produced?

• Why will it be produced?

• For whom will it be produced?

• When will it be produced?