CE.11 Test

Which type of resource is tools, equipment, and investment money?

• natural

• human

• capital

• entrepreneurship

Which type of resource is the person who has the ideas for new businesses?

• natural

• human

• capital

• entrepreneurship

Bob decides to attend college instead of entering the work force right out of high school. He is hoping to increase his future earning power, and in return, is giving up the immediate income and experience of starting work immediately. What is Bob's opportunity cost in this scenario?

• immediate income and experience

• future earning power

• four years of his life

The key factor in determining the type of economy a country has is...

• the amount of resources owned by the country.

• the supply and demand of the consumers.

• the price of goods and services.

• the extent of government involvement in the economy.

In a mixed economy, which sector operates like a free market economy?

• public

• private

• both public and private

In a mixed economy, which sector operates like a command economy?

• public

• private

• both public and private

Which of the following are characteristics of a

mixed economy?

(Select three.)

• In the private sector, individuals and businesses are the owners and decision makers.

• In the public sector, individuals and businesses are the owners and decision makers.

• In the public sector, the government is the owner and decision maker.

• Most economies today, including the U.S. economy, are mixed economies.

• In the private sector, the government is the owner and decision maker.

Which of the following are characteristics of a

command economy?

(Select two.)

• profit motive

• consumer choice

• central ownership of property and resources

• centrally-planned economy with little consumer choice

• competition

Which of the following are characteristics of a

free market economy?

(Select four.)

• private ownership of property and resources

• profit motive and competition

• consumer sovereignty and individual choice

• lack of consumer choice

• minimal government involvement in the economy

Which of the following statements are TRUE regarding a traditional economy?

(Select 2.)

• Economic decisions are based on supply and demand.

• Economic decisions are based on custom and historical precedent.

• People often perform the same type of work as their parents and grandparents, regardless of ability or potential.

• People choose their careers based on skills and preferences.