2024 Econ Checkup

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 natural resources available

Which of the following is NOT a basic question of economics?

• What will be produced?

• Who will get what is produced?

• Who will produce it?

• How can markets only deal with scarcity?

What type of economy is based on custom and historical precedent?

• Free market economy

• Command economy

• Mixed economy

• Traditional economy

In a free market economy, which of the following is NOT a characteristic?

• Government ownership of property/resources

• Private ownership of property/resources

• Profit motive

• Competition

Which economy is characterized by central ownership usually by the government?

• Traditional economy

• Free market economy

• Command economy

• Mixed economy

What is a defining feature of a mixed economy?

• The government is the sole decision maker for the public sector.

• Individuals and businesses are owners and decision makers for the private sector.

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

• All of the above

What does the circular flow diagram represent in the context of the United States economy?

• The flow of natural resources only

• The flow of goods and services only

• The flow of money only

• The continuous flow of resources, goods and services, and money among households, businesses, and markets

What is opportunity cost?

• The cost of the resources used in production

• The cost of the second-best alternative that is given up when a choice is made

• The total cost of all alternatives considered

• The financial cost of production

Which of the following best defines scarcity?

• The ability to satisfy all wants with the available resources

• The inability to satisfy all wants at the same time due to limited resources

• The overabundance of goods and services in the market

• The efficient distribution of goods and services

What are the 4 types of resources in economics?

• Financial, intellectual, physical, and labor

• Natural, human, capital, and entrepreneurship

• Economic, biological, chemical, and managerial

• Social, cultural, technological, and political