Economics Test

Extra Credit - Why does the quantity supplied decrease as the price decreases? (hint - Who decides how much to supply?)

Extra Credit - Why does the quantity demanded decrease as the price increases? (hint- Who decides what the demand is?)

Based on the graph, what is the ideal market price?

• $5
• $10
• $7
• $3

How is it decided what will be produced in a traditional economy?

• Goods that were always produced are still produced
• Individuals decide what to produce based on their skills and resources
• The goods produced are the ones that the government chooses

What determines how goods are produced in a command economy?

• Goods are produced in the most efficient manner as decided by the government
• Production of goods follows the same process that it always has
• Individuals can produce goods in any way that they see fit

What determines how goods are produced in a traditional economy?

• Goods are produced in the most efficient manner as decided by the government
• Production of goods follows the same process that it always has
• Individuals can produce goods in any way that they see fit

What determines how goods and resources will be distributed in a command economy?

• The government decides how goods and resources are distributed
• Goods and resources will go to anyone who is able to buy them
• Goods are usually shared or traded among the members of the society

What determines how goods and resources will be distributed in a traditional economy?

• The government decides how goods and resources are distributed
• Goods and resources will go to anyone who is able to buy them
• Goods are usually shared or traded among the members of the society

What determines how goods and resources will be distributed in a market economy?

• The government decides how goods and resources are distributed
• Goods and resources will go to anyone who is able to buy them
• Goods are usually shared or traded among the members of the society

What determines how goods are produced in a market economy?

• Goods are produced in the most efficient manner as decided by the government
• Production of goods follows the same process that it always has
• Individuals can produce goods in any way that they see fit