Economics Part 2

In a market economy, who makes the decisions?

• The People

• The government

In a command economy, who makes the decisions?

• The People

• The government

The United States is a

• 100% Market Economy

• 100% Command Economy

• Mixed Economy- primarily market

• Mixed Economy- primarily command

What is the primary type of economic system that North Korea has?

• Market Economy

• Command Economy

What tells us the total value of all the goods and services that are produced in a country?

• Gross Domestic Product (GDP)

• Inflation

• Unemployment Rate

• Federal Reserve Interest Rate

What tells us the portion of people in the labor force who are not working?

• Gross Domestic Product (GDP)

• Inflation

• Unemployment Rate

• Federal Reserve Interest Rate

What tells us how much prices of goods and services has gone up?

• Gross Domestic Product (GDP)

• Inflation

• Unemployment Rate

• Federal Reserve Interest Rate

Which of the following is how our Federal Reserve manages our economy?

• Gross Domestic Product (GDP)

• Inflation

• Unemployment Rate

• Federal Reserve Interest Rate

Which of the following is NOT a component of GDP

• Consumer Spending

• Business Spending

• Government Spending

• Intermediate Goods

Which of the following would not be included in GDP?

• 1. Exports to other countries

• 1. Purchases of computers by government

• 1. Automobiles purchased

• 1. Dinner preparation for your family