Economic Policy Review

Which of the following isn’t an economic question that businesses usually ask themselves?

• How should it be produced?

• What should be produced?

• For whom should it be produced?

• Why they are producing

Jackie just received her first paycheck in the mail. This paycheck means that she is earning a…

• Profit

• Debt

• Trade-off

• Opportunity Cost

Which of these is represented by the Gross Domestic Product (GDP)?

• the amount of reserve that banks are required to hold

• the total value of goods and services produced within a country

• the change in price of consumer goods and services

When the demand for a product goes up, what happens to the price?

• The price goes up

• The price goes down

• The price stays the same

When the supply for a product goes up, what usually happens to the price?

• The price goes up

• The price goes down

• The price stays the same

What happens to the price when the demand and the supply reach equilibrium?

• The price for demand is higher than the price for supply

• The price for supply is higher than the price for demand

• The price for demand and supply is the same

In which economic system does the government control what products will be made, how many will be made, and how they will be made?

• mixed economy

• command economy

• traditional economy

• market economy

In which economic system does supply and demand control what products will be made, how many will be made, and how they will be made?

• mixed economy

• command economy

• traditional economy

• market economy

The United States now should be considered a market economy.

• True

• False

A traditional economy is an economic system…

• based on long-standing customs and generations

• is run by businesses with government regulation

• controlled completely by the government

• determined solely by individuals competing for profits