Economic Test Review 2023

The interaction of supply and demand in the American market place _____________.

• is heavily regulated by the government.

• is based on a command economy.

• determines the price of a good or service.

• can only take place in mixed economies.

Scarcity leads individuals and businesses to __________.

• select actions from a set of alternatives.

• give up their opportunity cost.

• choose between supply and demand.

• produce goods without the factors of production.

The list and picture below show which principle of the American economic system in action?

*Free Financing

*Tax Credits

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• Opportunity cost

• Incentives

• Scarcity

• Monopolies

The type of economy a country has is determined by the ______________.

• amount of government involvement in the decision making.

• number of consumers and producers in the market place.

• profit motive of its people.

• vote of its citizens.

The chart below describes what type of economy?

• Traditional

• Command

• Mixed

• Free Market

Which principle of the American economy is being described below?

"Cell phone companies produce more smartphones today because consumers are buying more smartphones compared to the older style flip phones."

• Consumer Sovereignty

• Opportunity Cost

• Incentives

• Capital Resources

A business' profit motive is its ___________.

• net worth minus earnings

• earnings minus expenses.

• price per share of stock.

• investment divided by income.

What type of business organization is characterized by the list in the box?

• Corporation

• Cooperative

• Proprietorship

• Partnership

The type of business organization that limits the owners' risk to the amount of money invested is _______________.

• a corporation.

• an entrepreneurship.

• a proprietorship.

• a partnership.

What you give up when you make a choice is called:

• Price

• Opportunity Cost

• Incentives

• Supply and Demand