Econ ch 1-2 review

Which economy answers the 3 questions by repeating prior experience?

• command

• free market

• mixed

• traditional

The invisible hand drives the economy is which system?

• command

• free market

• mixed economy

• traditional

In a socialist economic system, who owns the factors of production?

• the government

• private citizens

• no one

• businesses

Which is NOT true of scarcity?

• scarcity forces choice

• scarcity can be resolved

• scarcity exists in all resources

• scarcity exists in all economic systems

Which of these are factors of production?

• entrepreneurship

• land

• labor

• investment

In a command economy, decisions are made by

• voluntary exchange

• central authority

• cost-benefit analysis

• opportunity cost analysis

Which of these is an example of a capital resource?

• master plumber

• excavator

• seeds

• corvette

Which is a modern example of command economy?

• Great Britain

• Japan

• Cuba

• South Korea

Positive economics is based on

• whether an outcome is beneficial

• whether variables move in the same direction

• GDP statistics

• information that is testable

The people have shared ownership of the production process and resources in which economy?

• socialism

• capitalism

• traditional

• communism