Econ chapter 7 test review

A person who makes goods or provides services is known as a

• Consumer

• Supplier

• Manufacturer

• Producer

What do we call the study of how people use scare resources to satisfy their wants?

• Economics

• Personal finance

• Advanced thinking

• Entrepreneurship

When there is not enough resources to meet the human demand it is called?

• Rarity

• Shortage

• Scarcity

• Demand

You decide to buy a $125 pair of shoes instead of a $85 pair. Your marginal cost is?

• $210

• $40

• $125

• $85

A microeconomist would study

• The ups and downs of the business cycle

• a general decline in prices

• a rise in tea prices

• the impact of national tax policy

In what type of economy would the Government control basic industries?

• Control Economy

• Command Economy

• Economic Economy

• Basic Economy

Why are private property rights important in a market economy?

• Allows the government to tax people more

• Determines levels of inflation

• Encourages people to buy things to boost the economy

• Are vital to any sale or exchange

Which of the following is an advantage of a command economy?

• The economy attempts to provide for everyone

• The economy is short of needed goals under 50% of the time

• Economic decisions are well guided

• The economy commands you to spend all of your money

In what type of system does the Government own some but not all of the factors or production?

• Socialist system

• Communist system

• Exclusive system

• Production system

In a Traditional Economy, the answer to all the questions is?

• ''what could be done''

• ''what should not be done''

• ''what has always been done''

• ''what needs to be done''