Economics 2022-2023

Which of the following would be most helpful to improving a country's standard of living?

• decreasing literacy rate

• increasing literacy rate

• reducing the number of factories

• creating more low-paying jobs

Who owns the resources in a command economy?

• the government

• no one

• individuals

• private businesses

The economic system of communist countries is closely related to which of the following?

• command economy

• market economy

• traditional economy

• mixed economy

Which of the following is NOT one of the basic questions that all economic systems must answer?

• what to produce?

• how to produce?

• how much to produce?

• for whom to produce?

Why is it important for a country to invest in human capital?

• a country needs money in order to pay its workers

• workers enjoy getting extra training and job opportunities

• businesses cannot do all the training needed by the workers

• a country is more successful with educated, healthy workers

A market economy is very different from a command economy - which is in a market economy?

• unpaid labor

• competition between businesses

• government control of industry

• government control of agriculture

This is an economic system where people follow the occupation of their ancestors?

• command

• market

• mixed

• traditional

What is a main reason for people to exchange currency (money)?

• to have foreign money

• to use American dollars to trade

• to more money by trading currencies

• to buy and sell goods with other countries

The number limit on how many items of a particular product can be imported from a country is____

• demand

• quota

• supply

• tariff

In a command economy, economic decisions are made by the

• consumers

• market

• government

• producers