SWA Economics Test Review

What is the biggest factor or factors affecting the answers to the three economic questions in a command economy?

• supply and demand

• customs and traditions

• government planning

• competition

What is the biggest factor or factors affecting the answers to the three economic questions in a traditional economy?

• supply and demand

• government planning

• traditions and customs

• GDP

What is the biggest factor or factors affecting the answers to the three economic questions in a market economy?

• supply and demand

• government planning

• traditions and customs

• GDP

In Hashim’s country the government makes most of the economic decisions and consumer choice and entrepreneurship is limited. The economic system in Hashim’s country is most likely 

• Market

• Command

• Traditional

• Autocratic

In which type of economy is the government most likely to set production quotas for certain goods?

• traditional

• Market

• command

• mixed

In which type of economy are producers least likely to produce a surplus of goods?

• traditional

• Market

• command

• mixed

Mixed economy is a combination of......

• traditional and market

• market and command

• command and traditional

• autocratic and democratic

Which statement correctly explains the relationship between literacy rates, standard of living, investment in human capital, investment in capital goods, and GDP?

• Countries that spend a larger percentage of their GDP investing in human capital and capital goods experience increases in literacy rate, standard of living, and GDP.

  
  

• Countries that spend a smaller percentage of their GDP investing in human capital and capital goods experience increases in literacy rate, standard of living, and GDP.

• Countries that spend a larger percentage of their GDP investing in human capital and capital goods experience increases in literacy rate and standard of living and decreases in GDP.

• Countries that spend a larger percentage of their GDP investing in human capital and capital goods experience decreases in literacy rate, standard of living, and GDP.

An increase in literacy rate, _______ the standard of living

• Improves

• decreases

Which factor or factors account for the Israeli economy being among the most developed in all of Southwest Asia?

• Investment in technology

• Investment in oil production

• Investment in textile

• investment in automotive parts