Econ Unit 1

What is the fundamental problem facing society?

• The government

• utility

• scarcity

• too many choices

Which of the following are fundamental questions that every economic system must address?

• What to produce

• Where to produce

• How to produce

• When to produce

• For whom to produce

For something to have value it must have which two things?

• Desire

• Scarcity

• Abundance

• Utility

What do economists study?

• markets and the flow of money

• governments and private companies

• people and their choices

• the economy

In this type of economy, producers and consumers determine how to use resources and make goods based on supply and demand, without government interference.

• Market Economy

• Traditional Economy

• Command Economy

• Mixed Economy

In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)

• Command

• Socialism

• Market

• Traditional

Which of the following is an example of a good or a service that is produced using the command economic model in the United States?

• housing

• public education

• laptops and technology

• medicine

(Click the magnifying glass for a better view.)

Based on the passage, East Germany's government planned to transform its economy from:

• Traditional to mixed

• Command to traditional

• Market to mixed

• Command to mixed

In a __________________ economy, families, clans, or tribes make economic decisions based on generational customs and beliefs.

• Mixed

• Market

• Traditional

• Command

What is the natural rate of unemployment?

(a)