Decisions about what to produce, how and for whom are decided by a central government

• Command Economy

• Traditional Economy

• Market Economy

• Mixed Economy

An advantage to this type of economy is the profit incentive

• Command Economy

• Traditional Economy

• Market Economy

• Mixed Economy

Most countries have this type of economy

• Command Economy

• Traditional Economy

• Market Economy

• Mixed Economy

The underlying problem of economics: limited resources, unlimited wants

• Surplus

• Shortage

• Scarcity

• Equilibrium

What is equilibrium price on the graph?

• 25

• 50

• 62.50

• 80

At a price of $100, there would be a:

• Surplus

• Shortage

• Equilibrium

• Deficit

Which of these is an example of fiscal policy?

• Raise or lower the discount rate

• Raise or lower reserve requirement

• Raise or lower taxes

• Open Market Operations

What will help slow down an economy that is expanding too quickly?

• Lower Taxes

• Raise Taxes

• Increase Government Spending

• Decrease Government Spending

All of these are major purposes of taxation EXCEPT:

• Fund private corporations

• Redistribution of income

• Provide public goods & services

• Influence behavior

A higher income taxed at a higher rate, while a lower income gets taxed at a lower rate is a:

• Progressive Tax

• Regressive Tax

• Proportional/Flat Tax

• Free Tax