POB Unit 5 Test Review

Which of the following items would be considered a non-economic want:

• a car

• new clothing

• a walk

• nutritious food

A business that begins selling winter holiday decorations in late autumn is creating __________ utility.

• possession

• time

• place

• form

A major characteristic of a market economy is ____________ ownership of property.

• private

• government

• limited

• monopolistic

Which of the following is a problem associated with communist command economies?

• There are high taxes

• Individuals run the risk of losing their business

• Supply and demand control what will be produced

• There is no competition

Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as ________________ states

• consumer

• welfare

• military

• capitalist

The basic role of the United States government is to:

• protect U.S. citizens

• maintain control of prices

• increase production

• limit business startups

In a private enterprise economic system, the interaction of supply and demand primarily determines:

• the extent of pollution

• economic choices

• product prices

• government regulation

Who decides how goods and services will be marketed in a private enterprise economic system?

• competitors

• Business People

• consumers

• legislators

What do economists call the intersection of a Demand curve and a Supply curve?

• Surplus

• Rationing

• Shortage

• Equilibrium price

The three economic questions each organization must answer are; What should be produced? How should it be produced? and:

• Why should it be produced?

• When should it be prodcued?

• Where should it be produced?

• For whom it should be produced?