Economic System Exam Review

Question 1

An economic system that has Government limits on actions of individuals is called ...

Accepted Answer

Mixed

Question 2

What is the definition of opportunity cost?

Accepted Answer

The next best alternative given up when a decision is made.

Question 3

Cheryl decides to sell board games instead of radios. The opportunity cost is _______.

Accepted Answer

radios

Question 4

Which of the following is NOT promoted by a command economic system?

Accepted Answer

profit for individual business

Question 5

Which is NOT a basic question economic systems try to answer?

Accepted Answer

When to produce?

Question 6

Who makes the decisions in a market economy?

Accepted Answer

The consumer and businesses

Question 7

You give up one thing for another in _________________ (this is another name for a decision).

Accepted Answer

a trade-off.

Question 8

Choices have to be made because ___________________.

Accepted Answer

wants and needs are greater than resources.

Question 9

An economic system in which private property is totally restricted is called:

Accepted Answer

Command

Question 10

Economic system which business are allowed to produce any goods and services they wish to is:

Accepted Answer

Market

Question 11

In a market economic system, private property is:

Accepted Answer

Encouraged

Question 12

What is an economic problem every nation has?

Accepted Answer

The problem of meeting everyone's needs.

Question 13

_______________________ is the most basic economic problem.

Accepted Answer

Scarcity

Question 14

A and B decide to attend college. A could work and make $15k a year and B could make $10mill.

Accepted Answer

Opportunity cost is greater for B than A.

Question 15

What is the main goal of a Mixed Economy?

Accepted Answer

To promote individual and social rights.

Questions 15