EPF Final Test Review

Jane wants to be a scientists, but her family have always been farmers, so she becomes a farmer

• Traditional

• Captialism

• Socialism

• Communism

Economies try to answer these fundamental economic questions:

• What goods and services are to be produced?

• How are goods and services to be produced?

• For whom are goods and services to be produced?

• all of these

In a ___________ economy, decisions about production and consumption are made by the government.

• market

• mixed

• command

• free enterprise system

Most modern economies today are ______ economies.

• market

• traditional

• command

• mixed

The United States is an example of which type of economic system?

• Command economy

• Traditional economy

• Free market economy

• Mixed economy

Who owns the factors of production in a command economy?

• Individuals and privately owned businesses

• Large corporations

• The government

• Foreign firms

In a mixed economy I decide the hours I am open and whether I am safe to open or not.

• True

• False

A market structure in which a single seller sells a unique product.

• natural monopoly

• barrier to entry

• oligopoly

• monopoly

A market structure in which a large number of small firms sell identical products, and entry into the market is easy.

• market structure

• perfect competition

• price taker

• monopoly

A market in which the average cost of production is lowest when only one firm supplies a good or service

• natural monopoly

• monopoly

• barrier to entry

• price maker