Test 1 Review

Who makes economic decisions in a mixed economy?

• Buyers

• The government and individuals

• Buyers & Sellers

• Sellers

Answer explanation

Mixed economic systems have elements of both command economies (government control) and market economies.

Who makes economic decisions in command economy?

• Buyers and sellers

• Buyers

• The government

• The government and individuals

Who makes economic decisions in a market economy?

• Buyers and Sellers

• Buyers

• The Government

• Both the Government and Individuals

What type of resource are factory workers?

• Labor Resource

• Land Resource

• Capital Resource

• Natural Resource

Answer explanation

Labor Resources or Human Resources are people- employees, managers, even professional development of those people

Cuba, North Korea, and Viet Nam primarily use what economic system?

• Traditional Economy

• Command Economy

• Market Economy

Answer explanation

Note that all 3 countries are considered communist and therefore use primarily government-controlled economies.

Producers are

• People Who Make Stuff

• People Who Buy Stuff

• People Who Consume Stuff

• People Who Provide Services

David is going to McDonald's to buy a Big Mac and french fries. In economic terms, David is a __________.

• Producer

• Sucker

• Supplier

• Consumer

Answer explanation

A consumer is someone who buys something.

What is economics?

• The study of how people deal with scarcity

• The study of how governments work

• The study of nature

• The study of why we exist

Nike and Converse are finding that their running shoes are not selling well. What are they most likely to do with respect to supply of running shoes?

• Increase Supply

• Decrease Supply

• Keep Supply Steady

Answer explanation

If the demand for something is not strong, producers will supply less of it.

Private property is owned by

• The Federal Government

• State Governments

• Individuals or Groups of People

• Opportunity Cost

Answer explanation

Private property is owned by individuals, NOT the government