Economics Quiz

Entrepreneurship thrives in a market economy.

• TRUE

• FALSE

The traditional economy is used in developed countries.

• TRUE

• FALSE

A mixed economy often results when a country shifts away from a command economy toward a market economy.

• TRUE

• FALSE

The U.S. economic system is best described as a traditional economy.

• TRUE

• FALSE

The rivalry among businesses to sell their goods and services is called competition.

• TRUE

• FALSE

Two factors that commonly enter into economic decision making are scarcity and opportunity cost.

• TRUE

• FALSE

The value of the next-best economic alternative is the trade-off cost.

• TRUE

• FALSE

The functions of business operate independently of each other.

• TRUE

• FALSE

The primary reason a business exists in a market economy is to earn a profit.

• TRUE

• FALSE

Which of the following is not one of the three basic questions that all economies must answer?

• When will the goods be produced?

• What goods and services will be produced?

• How will the goods and services be produced?

• For whom will the goods and services be produced?