Econ UNIT 1 Exam

Name

Class Period

• 1st
• 2nd
• 3rd

1. Under which economic system would factors of production most likely be owned by a government?

• market economy
• traditional economy
• command economy
• mixed economy

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

• market forces of supply and demand
• the central government
• independent agencies and independent regulators
• business owners

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

• 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

4. Who is primarily responsible for making economic decisions in a market economy?

• the central government
• big business
• market regulators
• Individuals

5. The United States economy can best be described as which type of economy?

• market economy
• command economy
• traditional economy
• mixed economy

6. Which term is used to describe a situation where the majority of people looking for work find a job?

• full employment
• structural employment
• underemployment
• seasonal employment

7. Which term is used to describe an owner’s exclusive right to control, publish, and sell an original work?

• private property
• copyright
• intellectual property
• commerce right

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

• voluntary exchange
• coerced exchange
• governmental exchange
• command exchange