Economics Unit 1 Review

What is ONE example of ECONOMIC EFFICIENCY?

• Minimum wage

• Equal pay for equal work

• We determine the best use for our scarce resources

• Protection from layoff and illness

Another name for capitalism, an economic system based on private ownership or productive resources.

• Free Enterprise System

• Economic System

Because of scarcity, we have to make decisions about our resources, what is this called?

• Production

• Allocation

• Distribution

• Consumption

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

• Resource Market

• Product Market

• Firms

• Individuals

In terms of resources, what do households provide for businesses?

• loans

• savings

• labor

• private goods

Which of the following is a point of production that cannot be sustained (or is impossible)?

• B

• X

• Y

Which of the following describes a command economy?

• business owners are encouraged to make a profit

• government owns most of the productive resources

• consumer demand determines the prices of goods and services

• labor unions work for improving employee benefits

The society shown in this picture, also known as Eskimo, has which type of economy?

• Market

• Open

• Command

• Traditional

The value of goods and services that are given up in order to obtain an alternative good or service is__

• scarcity

• circular flow model

• choice

• opportunity cost

Based on the passage, East Germany's government planned to transform its economy from: Click the magnifying glass for a better view.

• Traditional to mixed

• Command to traditional

• Market to mixed

• Command to mixed