Econ ACP Full

According to the diagram, the factors of production are provided by -

• individuals
• product markets
• businesses
• factor markets

According to the diagram, on can conclude that -

• economic factors are independent
• choices are made based on government spending
• businesses are not important to the circular flow
• economic factors are interdependent

Which is not a characteristic of the United States free enterprise system?

• Competition among businesses
• Consumer choice of goods and services
• Governemnt control of all businesses
• Private ownership of property

Land, capital, labor, and entrepreneurs are referred to as -

• factors of production
• consumer expenditures
• goods and services
• business income

What economic system best demonstrates the laissez-faire economic approach?

• Command
• Mixed
• Free enterprise
• Traditional

The laissez-faire economic approach is best demonstrated by the ____________ economic system.

• Command
• Mixed
• Free enterprise
• Traditional

A business invests in a new computer to handle customer phone inquiries. Which economic question is being addressed?

• How to produce?
• How much to produce?
• For whom to produce?
• What to produce?

Which statement best completes the list?

• Limited consumer markets
• New job creation
• Expanded trade barriers
• Fewer small businesses

The cartoon supports the idea that trade barriers protect-

• U.S. businesses from international competition but limit their market
• American companies from international competition and create jobs
• domestic companies and expand international trade opportunities
• the standing of the United States as the dominant world trading partner

At a price of $8, there is a -

• surplus of 32 units
• shortage of 60 units
• surplus of 50 units
• shortage of 28 units