Chapter 2: Economic Systems Test

Front

Under which economic system would factors of production most likely be owned by a government? Options: market economy, command economy, traditional economy, mixed economy

Back

command economy

Front

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

Back

the central government

Front

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

Back

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

Front

Who is primarily responsible for making economic decisions in a market economy? Options: the central government, big business, market regulators, individuals

Back

individuals

Front

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

Back

voluntary exchange

Front

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

Back

substitute good

Front

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

Back

utility

Front

What is South Africa’s main export?

Back

gold and diamonds

Front

Why was Nigeria formerly under a command economic system?

Back

The country was under military rule.

Front

What does the chart indicate that might be a concern about the economy of South Africa? Options: The GDP is lower than that of Nigeria. The country has a high unemployment rate. There is not much of a world market for gold and diamonds. Few of their people are able to work in the services sector of the economy.

Back

The country has a high unemployment rate.