Basic Economics & Trade Review

Every country decides how to distribute its resources to meet the needs of its people through a _________.

• government system

• economic system

• civics system

• literacy rate system

What are entrepreneurs?

• businesses owned by the government

• people who risk their own money and resources to start their own businesses

• businesses that are organized to be successful

• people who own farms and businesses that do not want to make a profit

What are the THREE economic questions that every country must answer when choosing an economic system?

• What to produce?

  How to produce?

  When to produce?

• What to produce?

  How to produce?

  For whom to produce?

• When to produce?

  What to produce?

  How to produce?

• When to produce?

  Where to produce?

  How to produce?

A limited supply of something is known as...

• surplus

• excess

• abundance

• scarcity

Customs and habits are most important to which type of economy?

• mixed

• market

• traditional

• command

In which type of economic system does the government control what factories produce and what prices to charge for those products?

• mixed

• market

• command

• traditional

In which type of economic system do consumers make economic decisions based on changes in prices that occur between buyers and sellers?

• mixed

• market

• command

• traditional

In a command economy, who usually owns the farms and factories?

• individuals

• corporations

• the government

• farm and factory workers

If the supply of a product decreases, but the demand for it increases, prices will...

• stay the same

• increase

• decrease

An economy that has some characteristics of both command and market economies is called...

• hybrid

• mixed

• centralized

• decentralized