ECON1.QuizNumberOne

Which principle gives rise to the concepts of trade-offs and opportunity costs?

• Abundance
• Scarcity
• Efficiency
• Sustainability

Who is known as the "Father of Economics"?

• Karl Marx
• John Maynard Keynes
• Adam Smith
• Milton Friedman

Which factor of production coordinates other factors for production?

• Labor
• Capital
• Entrepreneur
• Land

In a traditional economy, decisions are based on:

• Government regulations
• Market forces
• Customs and beliefs
• Private ownership

What does "Unemployment" refer to?

• Individuals who are unemployable
• Individuals who are not seeking a job
• Individuals who are employable but can't find a job
• Individuals who are retired

What term refers to a state or condition in which a person or community lacks the financial resources for a minimum standard of living?

• Inflation
• Recession
• Unemployment
• Poverty

In which economic system does the government have very little or sometimes no intervention in market transactions, allowing buyers and sellers to make decisions freely?

• Socialism
• Communism
• Capitalism
• Mixed Economy

In a country classified as socialist, what does the government primarily manage and control in terms of industries?

• All industries, including small businesses
• Only major and key industries
• The entire economy, including private businesses
• None of the industries

In a communist economic system, what happens to privately-owned property?

• It is encouraged and protected by the government.
• It is widely distributed among the citizens.
• It is owned and controlled by the government.
• It remains under the ownership of individuals.

In a mixed economy, which of the following statements is true?

• The government has no role in the economy.
• Private businesses control all aspects of the economy.
• The government manages all means of production.
• The government regulates and intervenes in various economic activities.