Econ Final Review

In which economic system is the protection of private property rights essential?

• Command

• Traditional

• Market

• Socialism

In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)

• Command

• Socialism

• Market

• Traditional

In a __________________ economy, families, clans, or tribes make economic decisions based on generational customs and beliefs.

• Mixed

• Market

• Traditional

• Command

Laissez-faire is a French term loosely meaning "leave things alone" that means the government should ______.

• not interfere in the economy at all

• regulate the economy when needed

• strictly regulate the economy

• be lazy at the fair

Capitalism and market economies are characterized by the concept of _______, which means fair prices naturally set themselves due to multiple people/businesses producing the same product/service.

• profit

• competition

• exchange

_______ is the concept in a market economy (capitalism) that a person will naturally concentrate their efforts in the economy on ways in which they have advantages or skills.

• Sovereignty

• Consumerism

• Specialization

• Voluntary Exchange

The definition of Scarcity is...

• An unlimited amount of resources to meet limited wants and needs
• A limited amount of resources to meet unlimited wants and needs.
• When people use time and energy to create events
• a city where individuals commit themselves to unlimited wants and needs

What is the fundamental problem of economics? 

• How to keep consumers out of debt?
• How to fulfill our unlimited wants and needs with limited resources?
• How to figure out the way to make the most money?
• How do we ensure all people get a college education?

Match the following

• the process of bringing new methods, products, or ideas into use

• innovation

• a system to protect people experiencing unfavorable economic conditions

• standard of living

• the income people receive for supplying factors of production

• factor payments

• the level of economic prosperity

• safety net

• the method used by a society to produce and distribute goods and services

• economic system

What are the four types of resources? Choose all that apply?

• Land

• Labor

• Capital

• Entrepreneurship.