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Princ BMF (Cengage Chapter 1 Terms)

Total questions: 22

Worksheet time: 20mins

Name
Class
Date
1.

All the tools, equipment, and machinery used to produce goods or provide services.

a)

want

b)

need

c)

systemmatic decision making

d)

capitol

2.

When demand is higher than the available resources

a)

want

b)

supply and demand

c)

need

d)

scarcity

3.

An economy is which individuals are free to make their own economic decisions, also known as free or market enterprise

a)

market economy

b)

command economy

c)

factors of production

d)

economic system

4.

Actions taken by two or more businesses attempting to attract the same customers.

a)

competition

b)

consumers

c)

customers

d)

capital

5.

An economy in which the government makes all of the decisions for its citizens

a)

consumer

b)

market

c)

command

d)

capitalism

6.

An economic system where the economic resources are privately owned by individuals rather than the government.

a)

profit

b)

supply and demand

c)

factors of production

d)

Capitalism

7.

An economic principle that states the price of a product is determined by the relationship of the supply of the product and the demand for the product

a)

Product

b)

Systematic decision making

c)

Law of Supply and Demand

d)

Market

8.

Organized way in which a nation chooses to use its resources to create goods and services.

a)

Market economy

b)

Economic System

c)

opportunity cost

d)

Command economy

9.

Willingness and ability to start a new business.

a)

Business

b)

Entrepreneurship

c)

economics

d)

capital goods

10.

Work performed by people in organizations, also called human resource

a)

Labor

b)

consumer

c)

Market

d)

wages

11.

Physical item that can be touched.

a)

good

b)

opportunity cost

c)

product

d)

customer

12.

Term for all the activities involved in developing and exchanging products.

a)

Business

b)

customer

c)

Goods

d)

Consumer

13.

Customers who purchase goods and services for their own use

a)

capital

b)

customer

c)

consumer

d)

competition

14.
The four types of economic systems are: 
a)
Traditional, Command, Mixed, & Market
b)
Traditional, Command, Combined, & Market
c)
Communism, Capitalism, Free Market, and Macroeconomics
d)
Microeconomics, Macroeconomics, Individual, and Traditional.
15.
Which of the following is an economic system in which the government and people are used to decide how to use scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
16.
Which of the following is an economic system in which economic decisions are made according to social roles & culture?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
17.
What is an economic system where only the government makes the economic decisions? 
a)
traditional economy
b)
free enterprise 
c)
mixed economy
d)
command economy
18.
What are the 3 economic questions?
a)
What to produce? How To Produce? For whom to produce?
b)
Who to produce? Why you produce? Like to produce?
c)
Why to produce? Tell who to produce? Things to produce?
19.

Which economy is dictated by supply and demand and the buyers and sellers (consumers and producers)?

a)

Market

b)

Socilaism

c)

Mixed

d)

Command

20.
In a command economy, who holds power over the economy?
a)
The people
b)
The government 
c)
Beyonce
d)
The traditions of your ancesetors 
21.
The government has little to no role in the production of goods in this type of economy. 
a)
Traditional 
b)
Mixed
c)
Command 
d)
Market
22.

The Country of North Korea has a dictator that makes all of the economic decisions. What type of economy is this?

a)

Traditional

b)

Market

c)

Command

d)

Mixed