Econ: Topic 2 Lessons 1-3

The structure or method a society uses to produce and distribute goods and services is called

• free market

• economic system

• command economy

• capitalism

This is an arrangement that allows buyers and sellers to exchange goods and services.

• competition

• private property

• internet

• market

Hanes and Fruit of the Loom both sell the exact same t-shirts, for the same price. Both of the company's advertisements talk about quality. What kind of competition is that?

• privatization

• non-price competition

• self-interest

• innovation

In a ________________ the government, rather than the individual, answers the three basic economic questions.

• centrally planned economy

• market economy

• democratic socialism

• totalitarian

Adam Smith favored a doctrine that supported a small degree of government interference. This doctrine was laissez faire.

• True

• False

Tyrese Industries Inc. made $500k last month. After paying its employees and paying their bills, they were left with $250k at the end of the month. What would we call that $250k left over?

• revenue

• bands

• profit

• stacks

The choices made by individuals determine what gets made, how it is made, and how much people can consume of the goods and services produced. What type of economic system is this?

• traditional economy

• free market economy

• command economy

• mixed economy

This economic system opposes private property, free market pricing, competition, and consumer choice.

• command

• traditional

• capitalism

• socialism

Many governments provide __________. These are a set of programs that protect people who face injuries or natural disasters.

• safety nets

• help

• social security

In a ​ (a)   a household is a person or group living in a single residence. They are consumers of goods and services. Whereas a business, or ​ (b)   , is an organization that uses the factors of production to produce a product and service.

• free market economy
• firm
• command economy
• business owner
• privatization
• communism