Economics Unit Review

What is the definition of an economy?

• A system of government

• A way a nation uses resources to meet needs and wants

• A method of communication

• A type of business organization

Which of the following is not one of the three basic economic questions?

• What should be produced?

• How should it be produced?

• Where should it be sold?

• For whom should it be produced?

Economics is the study of:

• Weather patterns

• Political systems

• Production, distribution, and consumption

• Historical events

Which philosopher is credited with early economic thought?

• Plato

• Hesiod

• Socrates

• Aristotle

A traditional economy is based on:

• Government control

• Consumer demand

• Habits and rituals

• Technology

In a market economy, who answers the three basic economic questions?

• Government

• Religious leaders

• Consumers and businesses

• Military

Which country is an example of a command economy?

The U.S. economy is best described as:

• Pure market

• Pure command

• Mixed leaning market

• Traditional

Which of the following is a tangible factor of production?

• Labor

• Entrepreneurship

• Land

• Innovation

Entrepreneurship involves:

• Natural resources

• Government control

• Risk-taking and organizing resources

• Manual labor