Unit 1 Econ Test Review

What are the three economic questions?

• What to produce? How to produce? For whom to produce?
• Who to produce? Why you produce? Like to produce?
• Why to produce? Tell who to produce? Things to produce?

Trying to satisfy unlimited wants with limited resources defines _____ and is the fundamental problem of economics.

• scarcity

• needs

• wants

• microeconomics

Land, labor, capital, and entrepreneurs are the

• results of supply and demand.

• result of production.

• basis of employment.

• factors of production.

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?

• Product Market

• Factor Market

• Firms

• Individuals

What are the four main parts of the circular flow diagram?

• Product Market, Stock Market, Factor Market, Fish Market

• Product Market, House Market, Factor Market, Good Market

• Factor Market, Product Market, Households, Firms

• Factor Market, households, Stock Market, super market

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes

What do households provide to the resource market?

• land, labor, capital 
• money
• people
• income

Which type of economic system bases its decisions on custom?

• Market

• Command

• Mixed

• Traditional

Which type of economy is run by the businesses and business owners with no government involvement?

• Market

• Command

• Mixed

• Traditional

Which type of economy would most likely have a dictator?

• Market

• Command

• Mixed

• Traditional