UNIT ONE REVIEW

What are the three economic questions that every country must answer?

• What to produce?

  How to produce?

  When to produce?

• What to produce?

  How to produce?

  For whom to produce?

• For whom to produce?

  Why to produce?

  What to produce?

• Why to produce?

  How to produce?

  When to produce?

Who answers the economic questions in a command economy?

• The government

• The people

• The businesses

• The legislature

What are the economic questions in a market economy based on?

• The government

• The people

• The businesses

• Supply and demand

There is no such thing as a 100% pure market economy.

• True

• False

There are several countries that have a 100% pure command economy.

• True

• False

What kind of economy do all countries have?

• Traditional

• Market

• Mixed

• Command

What is GDP?

• The total of goods and services produced by a country in a year.

• The amount of economic freedom a country has.

• It is the total amount of profit a country makes in a year.

• The amount of products shipped out for trade.

All of the following are Natural Resources EXCEPT:

• Oil

• Coal

• Trees

• Pencil

Which of the following is an example of a Capital Goods?

• Tractor

• Forrest

• Waterfall

• New York City

All of the following are examples of Human Capital EXCEPT:

• Education

• Skills

• Labor

• Factories