ECON CH 3 TEST (9NOV)

Imagine a scenario where Niehn, Jastlyn, and Ellie are part of a community where all property and wealth is collectively owned by all members. This community is similar to a country that has reached the final stage of socialism according to Marxist theory. What is this political and economic system called?

• Communism

• Socialism

• Capitalism

• Mixed economy

Niehn, Jastlyn, and Ellie are running a lemonade stand. They are trying to understand a diagram that shows the movement of money, lemons, sugar, and cups among their homes and the stand. What is this diagram called?

• Circular flow model

• Property rights

• Transfer payment

• Laissez-faire

Ellie, Jastlyn, and Niehn are discussing the economic systems of different countries. Ellie suggests a system where all economic decisions are made by individual producers and consumers, like in a farmer's market where the price and quantity of goods are decided by the sellers and buyers. Which economic system is Ellie referring to?

• Traditional economy

• Market economy

• Mixed economy

• Free market economy

Niehn, Ellie, and Jastlyn are playing a simulation game where they each run a country. They are discussing their countries' economic systems. Niehn says his country is a type where both the government and individuals play important roles in production and consumption. Ellie and Jastlyn think that most modern economies are like Niehn's. What type of economy is Niehn's country?

• Mixed economy

• Free market economy

• Market economy

• Traditional economy

Jastlyn, Ellie, and Niehn are running a summer business. In this scenario, what type of market is represented when they sell their homemade cookies and fresh juice to their neighbors and relatives?

• Transfer market

• Product market

• Free enterprise zone

• Resource market

Jastlyn recently received a payment from the government. She didn't provide any goods or services in return for this payment. This payment could be similar to the Social Security checks that Ellie's grandmother receives or the unemployment benefits that Niehn's brother was given. What is this type of payment called?

• Laissez-faire

• Factor payment

• Revenue

• Transfer payment

Niehn, Jastlyn, and Ellie are discussing the current job market. Jastlyn mentions a situation where every individual who is willing to work is able to secure a job. What economic condition is Jastlyn referring to?

• Economic efficiency

• Full employment

• Transfer payment

• Production possibility

Niehn, Jastlyn, and Ellie started a small online business selling handmade crafts. What is their incentive to make the business successful and earn money?

• Competition with other online craft stores

• Limited government interference in their online business

• Equal opportunity to start an online business

• Profit motive from the online business

Ellie, Jastlyn, and Niehn live in a small farming community where the economic system is based on age-old customs and traditions. They follow these traditions for making decisions about what crops to grow and what goods to consume. What type of economy does their farming community follow?

• Mixed economy

• Traditional economy

• Free market economy

• Market economy

Jastlyn and Ellie decided to open their own coffee shops in the same city, Jastlyn's being a Starbucks and Ellie's a Costa Coffee. This scenario is an example of what?

• Competition

• Command Economics

• Mixed economy

• Profit motive