Economic Decisions & Systems

Which of the following would an economist most likely classify as a need?

• Gasoline for a florist’s delivery truck

• A college degree

• A flat-screen television

• A part-time job to earn extra money

An example of a natural resource is…

• Sunlight

• A fishing net

• A computer programmer

• Money

The decision-making process is best to use when…

• You already know the choice you will make

• You are facing a decision with several good alternatives

• Groups rather than individuals are making a choice

• You don't have enough money to pay for any of the chioces

John has two hours before having to go to his part-time job. He is deciding between studying for a Math exam and taking a nap. If John chooses to take a nap, the opportunity cost of his decision is…

• The rest he is getting

• The score he will earn on the Math exam

• The wages from his part-time job

• All of the above

The first step in the decision-making process involves...

• Defining the problem

• Setting the goal

• Identifying choices

• Evaluating alternative

Which of the following addresses the economic question of how to produce?

• Growing corn instead of potatoes

• Requiring individuals to complete specific types of work

• Producing more capital goods and fewer consumer products

• Selling natural resources to other countries

In which of the following economic systems is the government’s role the largest?

• Mixed

• Traditional

• Market

• Command

Which of the following economic systems is usually centered on meeting the basic needs of people, such as food, clothing, water, and shelter.

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

The United States operates under which of the following economic systems?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

Consumers determine...

• Demand

• Goods

• Services

• Supplies