Business Organization - Chapter 2.2 Quiz

The three basic economic questions begin with each word except _______ .

• how

• who

• what

• why

Economic systems are the methods societies use to distribute ________.

• income

• resources

• possessions

• wealth

In a market economy, economic decisions are made _______.

• at the top

• by industry leaders

• by individuals

• in the marketplace

The amount of money given or asked for when a service is bought or sold is called its _______.

• cost

• value

• price

• worth

The amount of goods that producers will provide at various prices is called the ______.

• quantity

• stock

• reserve

• supply

The quantity of goods that consumers are willing to buy at various prices is called the _______.

• demand

• request

• purchase

• sale

The point at which the quantity demanded and the quantity supplied meet is called the _______ price.

• break-even

• dynamic

• compromise

• equilibrium

In a command economy, key economic decisions are made by _______.

• a central authority

• entrepreneurs

• individuals

• capitalists

The United States is primarily a _________ economy.

• command

• market

• consumer

• mixed

Another name for a market economy is a ________ system.

• competitive

• democratic

• contemporary

• free enterprise