Econ Quiz Two

In this type of economy, practices and trades are handed down from one generation to the next, maintaining long-standing traditions.

• Market
• Traditional
• Mixed
• Command

What type of economy is characterized by supply and demand being determined by individual decisions in the marketplace?

• Market
• Mixed
• Traditional
• Command

In a _______ economy, resources and businesses are owned by the government. The government decides what goods and services will be produced and what prices will be charged for them. The government decides what methods of production will be used and how much workers will be paid

• Market
• Traditional
• Mixed
• Command

What are natural resources?

• Goods and services produced by human effort
• Man-made materials used in production processes
• Assets provided by nature that can be used for economic gain
• Financial assets such as stocks and bonds

Which of the following best defines the concept of "incentives" in economics?

• The taxes imposed by the government on goods and services
• Monetary rewards offered to workers for completing tasks
• The increase in prices due to high demand for a product
• The regulations set by the government to control market behavior

A country focusing on producing primarily technology and pharmaceuticals instead of a wide variety of goods & services.

• Free Trade
• Specialization
• Voluntary trade
• Over-specialization

A person that buys something is a...

• Consumer
• Producer
• Capital
• Labor

What does "economic interdependence" refer to in economics?

• The reliance of businesses on government subsidies for operation
• The situation where one country's economic activities rely on another country's economic activities
• The practice of monopolizing a market to control prices
• The mutual reliance of individuals, businesses, and nations on each other for goods, services, and resources

What is the definition of "economy" in the context of economics?

• The study of how individuals make decisions about the allocation of resources
• The system of production, distribution, and consumption of goods and services in a specific region or country
• The amount of money a government spends on public projects and services
• The total value of goods and services produced within a country in a specific time period

Which of the following best describes the "chain of supply" in economics?

• The sequence of events leading to the creation of a new product
• The network of companies involved in the production and distribution of goods and services
• The process of determining the price of goods and services in the market
• The government regulations overseeing the transportation of goods between countries