1st Term PreTest

To provide utility, a product must

• be innovative
• be economical
• look appealing
• provide satisfaction

Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. This is an example of

• demand.
• elasticity.
• supply.
• market price

When less expensive substitutes for a product are readily available, then demand for that product is likely to be more

• elastic.
• complementary.
• urgent.
• inelastic.

Which of the following countries is correctly paired with its economic system:

• Cuba – Communist command
• China – Traditional
• England – Market
• Japan – Socialist

Which of the following items is found in all economic systems:

• Technology
• Participants
• Subsistence
• Dollars

Lack of economic growth is a major problem for __________ economic systems.

• traditional
• communist command
• market
• socialist command

In a traditional economic system, the question of what to produce is answered by producing

• what the government chooses.
• what consumers need and want.
• what supply dictates.
• what has always been produced.

What type of economic system is used in the United States?

• Market
• Socialist command
• Traditional
• Communist command

Which of the following is an economic question that must be answered by all economic systems:

• How will products be allocated?
• How can government control be limited?
• How can competition be increased?
• How can the profit motive be encouraged?

The economic system that allows people to own their own businesses and distribute the products they produce is a __________ economy.

• market
• totalitarian
• communist
• socialist