Economic Systems

Which of the following is NOT one of the basic questions of economics?

• What will be produced?

• How will it be produced?

• What will it be produced with?

• For whom will it be produced?

_______________ ______________is what is given up when a choice is made (the second best alternative).

• Opportunity cost

• Supply and Demand

• Free Market

• Mixed Economy

_________________ is selection of an item or action from a set of possible alternatives.

• Production

• Scarcity

• Resources

• Choice

_______________ is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services.

• Choice

• Production

• Consumption

• Resources

In what type of economy are decisions based on custom and historical precedent and people often perform the same type of work as their parents and grandparents, regardless of ability or potential.

• Free market economy

• Command economy

• Traditional economy

• Mixed economy

In what type of economy is there Central ownership (usually by government) of property/resources and centrally planned economy. Also there is lack of consumer choice

• Traditional economy

• Free market economy

• Mixed economy

• Command economy

In what type of economy is there private ownership of property/resources , profit motive, competition, consumer sovereignty, individual choice and minimal government involvement in the economy.

• Traditional economy

• Free market economy

• Command economy

• Mixed economy

In what type of economy are individuals and businesses owners the decision makers for the private sector. The government is owner and decision maker for the public sector. The government’s role is greater than in a free market economy and less than in a command economy. Most economies today, including the United States, are mixed economies.

• Mixed economy

• Command economy

• Free market economy

• Traditional economy

People often perform the same type of work as their parents and grandparents, regardless of ability or potential.

• Free Market

• Mixed

• Command

• Traditional

Individual choice

• Free Market

• Mixed

• Command

• Traditional