Civics Chapter 16- Lesson 1

Which type of resource is a factory building?

• capital resource

• intermediate resource

• human resource

• natural resource

Scarcity is the basic economic problem because

• all expensive goods cannot be shared equally.

• all resources are limited, but wants are not.

• nations must spend money for resources they do not have.

• people face shortages on a seasonal basis.

How are nations similar to individuals in regard to economics?

• Nations do not have to pay for public goods and services.

• Nations focus on producing private goods and services.

• Nations must make choices about limited resources.

• Nations must pay taxes.

What are the three economic questions all societies must answer?

• what, how, and for whom to produce

• when, where, and how to produce

• where, why, and how many to produce

• why, what, and where to produce

In which system are economic decisions made based upon price?

• market economy

• command economy

• communist economy

• traditional economy

market economy- Individuals and businesses own the resources used to produce goods and services.

• true

• false

traditional economy- Economic questions are answered on the basis of habit or custom.

• true

• false

command economy- planners who work for the government answer the economic questions.

• true

• false

mixed market economy- this is the study of how people use limited resources to satisfy unlimited wants.

• true

• false

mixed market economy- government and private business owners play roles in a compete-for-profit system.

• true

• false