Economics 5-1 Quiz

What is economics the study of?

• The study of how a society manages all of its resources to produce and distribute goods and services.

• The study of money and financial transactions exclusively.

• The study of traditional systems and their historical impact.

• The study of government control over production and resources.

What is an economic system?

• An organized way that a state, nation, or country manages all their production, buying, and selling.

• A method for tracking the stock market.

• A system for monitoring cash flow exclusively.

• A set of rules for international trade.

Which economic system is based on tradition?

• Market

• Command

• Mixed

• Traditional

What characterizes a command economic system?

• It is based on tradition and what has been done for a long time.

• It operates with a capitalistic mindset within a mixed economic system.

• A large part of the economy is controlled by a central power, often the government.

• It is determined by supply and demand and characterized by competition within the market.

How does a market economic system operate?

• By combining aspects of other economic systems.

• Through government control and regulation of all production and trade.

• By tradition and the passing down of jobs and resources.

• Through supply and demand with competition within the market.

What is a mixed economic system?

• A system that combines aspects of the traditional and command systems.

• A system that is purely based on market principles without any government intervention.

• One that combines certain aspects of the other three systems.

• A system where the government controls all aspects of the economy.

Which country operates with a capitalistic mindset within a mixed economic system?

• China

• Russia

• The United States

• North Korea

What determines the price of goods and services in a market economy?

• The level of government regulation

• The amount of taxes collected by the government

• How much people are willing to pay

• The number of businesses in the market

What happens to prices when the supply of something increases and the demand remains the same?

• Prices will go up

• Prices will go down

• Prices will not change

• Prices will fluctuate unpredictably

What is the relationship between supply and demand in a market economy?

• Supply and demand are unrelated

• Demand drives supply, and supply drives prices

• Supply drives demand, and demand drives prices

• Demand drives supply, and supply determines the amount of resources available