Economics Quiz

What is a Market Economy?

• An economy in which customs and habits of the past decide what and how goods and services are produced, distributed, and consumed.

• An economy in which changes in price guide what and how goods and services will be produced, distributed, and consumed.

• An economy that blends characteristics of both command and market economies.

• An economy in which centralized planning groups decide what and how goods and services will be produced, distributed, and consumed.

Which type of economy blends characteristics of both command and market economies?

• Market Economy

• Traditional Economy

• Mixed Economy

• Command Economy

What is the definition of Consumption?

• The process of creating the goods and services.

• Limited supply of something.

• Goods purchased from other countries.

• The final purchase of goods and services by individuals.

What does Scarcity refer to?

• The process of creating the goods and services.

• Limited supply of something.

• Goods sold to other countries.

• The most desirable alternative given up as the result of a decision.

What is the term for goods purchased from other countries?

• Exports

• Imports

• Distribution

• Production

What is the process of creating goods and services called?

• Consumption

• Distribution

• Production

• Scarcity

What does Distribution mean?

• Limited supply of something.

• The final purchase of goods and services by individuals.

• Goods sold to other countries.

• To spread the product.

What is Opportunity Cost?

• Goods purchased from other countries.

• The most desirable alternative given up as the result of a decision.

• The process of creating the goods and services.

• Limited supply of something.

What is a Command Economy?

• An economy in which changes in price guide what and how goods and services will be produced, distributed, and consumed.

• An economy in which customs and habits of the past decide what and how goods and services are produced, distributed, and consumed.

• An economy that blends characteristics of both command and market economies.

• An economy in which centralized planning groups decide what and how goods and services will be produced, distributed, and consumed.

What is an Economic Continuum?

• An economy in which changes in price guide what and how goods and services will be produced, distributed, and consumed.

• An economy that blends characteristics of both command and market economies.

• On one end of the eco. Con. is centrally planned governments and on the other end is the free market.

• The final purchase of goods and services by individuals.