Civics 8 Unit 23 Vocabulary Quiz

What is an economy?

• A system for saving and investing money

• A system for producing and distributing goods and services to fulfill people's wants

• A group of people working together in a company

• A government system for managing a country's resources

What does the term "scarcity" refer to in economics?

• The abundance of resources in a market

• The problem that resources are limited compared to people's wants

• The distribution of goods and services

• The production of capital goods

Which type of economy is based on tradition and custom?

• Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy

What characterizes a Command Economy?

• Economic decisions are made by the market

• Economic decisions are made by individuals

• The government or other central authority makes all economic decisions

• Economic decisions are based on supply and demand

What is a Mixed Economy?

• An economic system that combines elements of pure market and command economies

• An economy where all decisions are made by the government

• An economy solely driven by market forces

• An economy where traditions guide economic decisions

What is the definition of "profit"?

• The total revenue minus the total expenses of a company.

• The difference between the cost of producing something and what the buyer pays for it.

• The amount of money invested in a business by its owners.

• The financial gain after selling a personal asset.

What does it mean to "invest" in a business context?

• To save money for future use.

• To purchase stocks or bonds of a company.

• To use money to help a business get started or grow.

• To lend money to a business with no expectation of returns.

Which system allows individuals to undertake economic activities with little or no control by the government?

• Socialism

• Communism

• Free enterprise

• Totalitarianism

What is "Capitalism" characterized by?

• Government ownership of capital and resources.

• People making their own decisions about how to save resources as capital.

• Equal distribution of resources among all citizens.

• State-planned economic activities.

What does "rent" refer to in economic terms?

• The cost of borrowing money.

• Payment for the use of land or a product.

• A fee for using public services.

• The income received from leasing out real estate.