TMTQ - Chapter 2

In a market economy, which of the following factors primarily determines what goods and services are produced?

• The government

• Consumer demand

• The availability of resources

• The decisions of large corporations

In a market system, an individual's ability to buy goods and services is most closely linked to:

• Their needs

• Their wants

• Their income

• Their social status

One nation can produce more goods with fewer workers than another nation due to:

• Lower labor costs

• Greater worker productivity

• Access to more natural resources

• A larger workforce

In which type of economy does the government have the most control over the production and distribution of goods and services?

• Market economy

• Command economy

• Mixed economy

Which of the following is a key characteristic of a market economy?

• a) Centralized planning

• b) Government ownership of resources

• c) Competition among businesses

• d) Limited consumer choice

A mixed economy is one in which:

• The government controls all economic activity

• The market is completely free from government intervention

• • The government and the market both play a role in economic decision-making

• • There is no private ownership of property

Which type of economy is most likely to experience shortages of goods and services?

• Market economy

• Command economy

• Mixed economy

Which of the following is an example of a mixed economy?

• The United States

• North Korea

• Cuba

• The Soviet Union (during the Cold War)

Which of the following is NOT one of the three basic economic questions that every society must answer?

• What goods and services should be produced?

• How should goods and services be produced?

• Who should receive the goods and services?

• How can we increase our profits?

The question "Who should receive the goods and services produced?" addresses:

• The distribution of income and wealth within a society

• The efficiency of production methods

• The impact of production on the environment

• The role of government in the economy