Economics

Which best describes economics

• A system of ruling society

• It is a system of wealth distribution where goods and services are traded with one another, nothing is purchased with money

• The study of how we make choices in the face of scarcity ad how those choices mtoivate behavior

• The practice of lending money at a very high interest rate.

What are the three ways the health of a country's economy os measured?

• Gross Domestic Product, Supply and Demand and Unemployment Rate

• Gross Domestic Product, Supply and Demand, and Income of the country’s citizens

• Gross Domestic Product, the value of goods and services produced, and inflation

• Gross Domestic Product, Unemployment Rate, and Inflation

What does the Gross Domestic Product indicate  about a country?

• GDP measures all goods and servies produced in a country in a year including exports.

• GDP is a system of wealth distribution where goods and services are traded with one another.

• GDP includes all goods that are made by nature or created by humans and used for producing goods or services. 

• GDP is the value of the income generated, mostly in terms of profits and wages.

Why should citizens be concerned about inflation?

• If there is inflation we are paying less for a product than we did a month or a year ago.

• If there is inflation we are paying more for a product than we did a month or a year ago.

• If there is inflation we are paying the same for a product than we did a month or a year ago.

An indicator that measures the percentage of the labor force that wishes to work but are currently without a job.

• Inflation Rate

• Expenditure

• Gross Domestic Product

• Unemployment Rate

An economic system is a society’s system of production, distribution and consumption of

• stocks and bonds

• natural resources

• goods and services

• factors of production

If supply is low and demand is high

• prices will rise

• prices will drop

• prices remain flat

• competition disappears

Every economic system must answer three questions. What is produced? How is it produced?

• For whom is it produced

• Why is it being produced

• Should it be produced at all

• How easily can it be produced

Who owns factors of production in a command economy?

• Private citizens

• religious institutions

• the government

• All of the above

In which economic system do private individuals control the economy?

• Socialism

• Communism

• Capitalism

• Mixed Economy