2/22 Check-in

Which term refers to a condition which exists when our unlimited needs/wants exceed our limited resources?

• Scarcity

• Supply

• Demand

• Surplus

The amount of goods or services available for a producer to sell is called?

• supply

• demand

• producer

• consumer

The want or willingness a consumer has to purchase a good or a service is called?

• shortage

• supply

• demand

• price

True or False: A command economy is when the government is in control.

• True

• False

What type of economy do most countries in the world have now?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

Which type of economy is based on customs, traditions, and cultural beliefs?

• Market economy

• Command economy

• Mixed economy

• Traditional economy

Answer explanation

A traditional economy is based on customs, traditions, and cultural beliefs. In this type of economy, people rely on the knowledge and practices passed down through generations to produce goods and services. Unlike market, command, or mixed economies, traditional economies are primarily driven by social norms and values, rather than profit or government control.

Which of the following is an example of scarcity?

• Having an abundance of food and water

• Having a surplus of money

• Not having enough time to complete all tasks

• Not having access to education

Answer explanation

Scarcity refers to the limited availability of resources or the inability to satisfy all wants and needs. In this question, not having enough time to complete all tasks is an example of scarcity, as it represents a limited resource (time) that cannot meet all demands (tasks). The other options involve abundance or access, which are not related to scarcity.

In a market economy, who determines what goods and services are produced?

• The government

• Consumers and businesses

• The central planning authority

• Customs and traditions

Answer explanation

In a market economy, the production of goods and services is determined by the interaction between consumers and businesses. Consumers express their preferences through their purchasing decisions, while businesses respond by producing goods and services that meet consumer demand. This decentralized decision-making process allows for efficient allocation of resources and encourages innovation.

Match the following factors of production with the correct example.

• The creation of Facebook

• 
  Capital

• An Accountant

• Land

• Oranges for orange juice

• Labor

• Woodworking bench

• Entrepreneurship

Place the labels for the three types of economic systems on the correct areas of the spectrum.

c

b

a

Market Economy

Command Economy

Traditional Economy

Mixed Economy