PFET: Unit 1, Weeks 1 and 2 Review

Economics is the study of _________________

• how individuals buy things

• how individuals sell things

• how individuals buy and sell things

• how individuals and society make decisions about ways to use scarce resources to fulfill wants and needs

Microeconomics is about how individuals make economic decisions

• true

• false

Macroeconomics is the day-to-day decisions that people make every day.

• true

• false

"When we are going to produce this product?", is an example of one of the five economic questions.

• true

• false

An example of a traditional economy is_______________

• United States

• North Korea

• Amish society

• Australian economy

A command economy is an economy where___________________

• government has little control of the economy

• the government has total control of the economy

• the government has limited control of the economy

• nothing to do with the economy

A market economy is when consumer choices determine how industries and financial markets operate

• false

• true

An example of a mixed market economy is _______________

• North Korea

• Amish society

• United States

• Poland

Opportunity cost is the value of the next best thing.

• true

• false

Cotton cloth is an example of a capital good.

• false

• true