Economics Ch.1-3 Review

Who or what answers the basic economic questions in a mixed economy?

• Individuals and Businesses
• Government
• Custom
• Individuals, Businesses, and Government

Who or what answers the basic economic questions in a traditional economy?

• Individuals and Businesses
• Government
• Custom
• Individuals, Businesses, and Government

What type of economy do most countries in the world have?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Of the three major economic questions, which of the following is the best example of a "What?" question? 

• Should automobiles be produced using workers or robots? 
• Should higher-income or lower-income people buy SUVs?
• Should we make faster microprocessors or pest-resistant corn? 
• Should migrant workers or domestic workers be used to pick grapes?

When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers the ___ question. 

• what
• how
• for whom
• where

Which of the following best explains a mixed economy?

• Private ownership of the factors of production and regulation of businesses by government

• Market exchanges answer all three of the big economic questions

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

• Government answers all three of the big economic questions

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

• Mixed

• Market

• Traditional

• Command

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

• Market
• Factor of production
• Money
• Interdependent

In the products market,

• firms buy goods and services from households
• firms sell goods and services to households
• firms sell resources to households
• firms buy resources from households

What does government provide with the revenue it takes in from taxes?

• Headaches

• Public goods and services

• More Congressmen

• Greater control of the media