Economics Quiz

A product of the earth ("gift of nature") that people use to meet their needs is a

• good.

• natural resource.

• free enterprise.

• service.

The number limit on how many items of a particular product can be imported from a particular country is the

• demand.

• quota.

• supply.

• tariff.

The economic system of communist countries is most closely related to which of the following:

• Command economy.

• Market economy.

• Traditional economy.

• Mixed economy.

Which of the following is NOT one of the basic questions that all economic systems must answer:

• What to produce?

• How to produce?

• How much to produce?

• For whom to produce?

A market economy is very different from a command economic system or a traditional system. Which of the following is found in a market economy?

• Free labor

• Competition between businesses

• Government control of industry

• Government control of agriculture

In a command economy, economic decisions are made by the

• consumers

• market

• government

• producers

Which is an example of human capital?

• Education

• Roads

• Factories

• Machinery

Who owns the resources in a command economy?

• the government

• no one

• individuals

• private businesses

How are goods and services exchanged in a traditional economy?

• A through prices and wages

• B through government regulation

• C through bartering

• D through shortages and surpluses

Which trade barrier sets up a complete ban on trading between countries?

• A mountain

• B tariff

• C quota

• D embargo