Econ 11/12 Review

Which example defines a traditional economy?

• Government is the owners and decision makers of the public sector

• Economic decisions are based on custom and historical precedent

• Centrally planned economy

• Private ownership of property and resources

Which example defines a command economy?

• Government is the owners and decision makers of the public sector

• Economic decisions are based on custom and historical precedent

• Centrally planned economy

• Private ownership of property and resources

Which example defines a free market economy?

• Government is the owners and decision makers of the public sector

• Economic decisions are based on custom and historical precedent

• Centrally planned economy

• Private ownership of property and resources

Which two factors most directly affect price?

• Free and mixed economies

• Supply and Demand

• Competition and Supply

• Consumer Sovereignty and Profit

In the circular flow model, goods/services and resources flow in one direction. What flows in the opposite direction?

• Profits

• Money

• Incentives

• Tax Revenue

When Supply is high and Demand is low where will price be?

• High

• Low

• None of the above

• It'll stay the same

What are the earnings left after a business has paid all of its expenses?

• Capital

• Wages

• Profit

• Taxes

What is consumption?

• Making of goods and services

• What determines price

• What's given up when a choice is made

• The use of goods and services

"A form of business organization where one owner takes all the risk and all the profits"

• Proprietorship

• Partnership

• Corporation

• Entrepreneurship

"A form of business organization where two owners takes all the risk and split the profits"

• Proprietorship

• Partnership

• Corporation

• Entrepreneurship