Economic Decision Making and Critical Thinking

In mixed economies, what role do consumer choices play?

• They have no impact

• They drive all economic decisions

• They drive a lot of economic decision making

• They are ignored

What is the main economic force in both mixed and market economies?

• Government intervention

• Corporate decisions

• Individual choices of consumers

• International trade

What is the relationship between supply and demand?

• They are unrelated

• They are inversely related

• They connect through a cause-and-effect relationship

• They are the same

What does the Baker’s Dozen shop specialize in?

• Cheap, plentiful doughnuts

• Handmade doughnuts

• Frozen doughnuts

• Vegan doughnuts

What is a potential impact of shop decisions on consumers?

• Increased travel time

• Changes in product availability and quality

• Higher taxes

• More advertising

What is the main goal of the Canadian Wheat Board according to the text?

• To increase wheat exports

• To protect wheat growers from low prices

• To reduce wheat production

• To eliminate wheat imports

What is one reason a consumer might be persuaded to try a skateboard?

• High cost

• Peer influence

• Limited options

• Lack of interest

What is one reason the B.C. government started its own auto insurance program?

• To increase profits for private insurers

• To make auto insurance more expensive

• To address concerns about high insurance costs

• To reduce the number of insured drivers

What is the purpose of a "tire tax"?

• To increase the cost of tires

• To fund road construction

• To support tire recycling efforts

• To discourage driving

What is a potential benefit of government intervention in market economics?

• Increased monopoly power

• Improved consumer protection

• Higher prices for consumers

• Reduced product variety