Chapter 2: Economic Systems Test

Under which economic system would factors of production most likely be owned by a government?

• market economy

• command economy

• traditional economy

• mixed economy

In a command economy, how are the prices of goods and services determined?

• market forces of supply and demand

• the central government

• independent agencies and independent regulators

• business owners

Which statement best describes the difference between a market economy and a traditional economy?

• in a market economy, decisions are based on custom

• in a traditional economy, decisions are based solely on supply and demand

• in a traditional economy, decisions are based on habit and custom

• in a market economy, decisions are based on habit

Who is primarily responsible for making economic decisions in a market economy?

• the central government

• big business

• market regulators

• individuals

The United States economy can best be described as which type of economy?

• market economy

• command economy

• traditional economy

• mixed economy

What type of exchange is described as buyers and sellers freely and willingly engage in market transactions?

• voluntary exchange

• coerced exchange

• governmental exchange

• command exchange

Which type of good is a competing product that consumers can use in place of another?

• complementary good

• substitute good

• disposable good

• exchange good

Which of the following is the best example of complementary goods?

• computers and software

• lamps and computers

• computers and gasoline

• software and lamps

Which term refers to the satisfaction, usefulness, or enjoyment received from consuming a good or service?

• demand

• supply

• utility

• price

The Nigerian economy has the majority of its people employed by

(a)  

• agriculture
• Services
• industry
• mining