Unit 1 Economics Quiz

What is the definition of Economics?

• The study of human anatomy

• The study of weather patterns

• The branch of knowledge concerned with the production, consumption, and transfer of wealth

• The study of ancient civilizations

Which economic system relies on established trends and has very little division of labor or specialization?

• Market Economy

• Mixed Economy

• Traditional Economic System

• Command Economic System

In which economic system does a dominant centralized authority, usually the government, make production decisions?

• Mixed Economy

• Command Economic System

• Market Economy

• Traditional Economic System

What is the downside of a market economy?

• Allows private entities to amass economic power

• Vulnerable to economic crisis

• Promotes trade

• Government interference

Which type of economy combines the characteristics of market and command economic systems?

• Traditional Economic System

• Command Economic System

• Market Economy

• Mixed Economy

What does scarcity imply?

• No trade-offs are made

• Sufficient resources to fulfill subjective wants

• Limited resources

• Unlimited resources

What is opportunity cost?

• The value of a choice, relative to an alternative

• The cost incurred by not enjoying the benefit associated with the alternative choice

• The cost incurred by enjoying the benefit associated with the alternative choice

• The value of a choice, relative to an alternative

What is trade?

• The act of exchanging services within a country

• The act of buying and selling commodities between countries

• The act of buying and selling commodities within a country

• The act of exchanging services between countries

Which economic system do you believe could have the most benefits for the people of the country that it supports?

• Command Economic System

• Traditional Economic System

• Mixed Economy

• Market Economy