Economics Study Guide Quiz

What is the problem of scarcity said to face in the study guide?

• Only individuals and businesses

• Only organizations and governments

• Only consumers and producers

• All individuals and organizations, including businesses and governments

According to the study guide, what must individuals consider when making a choice due to scarcity?

• The cost of the goods and services

• The opportunity cost of what is given up

• The availability of resources

• The consumer preferences

What are the types of resources mentioned in the study guide?

• Financial, intellectual, and physical

• Natural, human, and technological

• Natural, human, capital, and entrepreneurship

• Biological, chemical, and management

What determines what is purchased and consumed according to the study guide's section on consumption?

• Government regulations and laws

• Consumer preferences and price

• Availability and marketing strategies

• Production costs and resource allocation

What is the key factor in determining the type of economy a country has?

• The country's population size

• The extent of government involvement

• The country's geographical location

• The literacy rate of the population

Which type of economy is characterized by private ownership of property/resources and minimal government involvement?

• Traditional Economy

• Command Economy

• Mixed Economy

• Free Market Economy

In which type of economy do economic decisions rely on custom and historical precedent?

• Traditional Economy

• Free Market Economy

• Command Economy

• Mixed Economy

What is a characteristic of a command economy?

• Consumer sovereignty

• Competition

• Centrally planned economy

• Private ownership of property/resources

What distinguishes a mixed economy?

• It has no government involvement at all.

• It is solely based on historical precedents.

• Its government's role is greater than in a free market economy but less than in a command economy.

• Individuals and businesses have no role in the private sector.

Which economy is most prevalent in the world today, including the United States?

• Traditional Economy

• Free Market Economy

• Command Economy

• Mixed Economy