Chapter 3: Economic Understandings

What type of economy do MOST nations have today?

• Command

• Market

• Mixed

• Traditional

In what type of economy are government control and centralized planning important?

• Command

• Market

• Mixed

• Traditional

Which economic system is based on economic free will?

• Command

• Market

• Mixed

• Traditional

Which economic system would have subsistence farming, weaving, and simple trade?

• Command

• Market

• Mixed

• Traditional

Which are costs that you must sacrifice because of a decision?

• Dividends Cost

• Financial Costs

• Opportunity Costs

• Production Costs

Which of these is a factor of production?

• Capital Goods

• Consumers

• Demand

• Fossil Fuels

Which term means "the amount produced in a country during a fiscal year"

• Capital

• Goods

• Gross Domestic Product

• Gross Production Efficiency

Along with the cost of production, which determines the cost of goods?

• Capital and Resources

• Customers and Money

• Supply and Demand

• None of the above

What are taxes placed on imported goods?

• Capital

• Income

• Producton

• Tariffs

What are the three economic question that every country's economy must answer?

• How to produce, when to produce, and why to produce?

• What to produce, how to produce it, and who is getting it?

• What is the price, what is the cost, and what is the opportunity cost