Which of the following is true about a market economy?

There is no government involvement in economic decisions.

Way a country provides for the wants and needs of its people

Which of the following is true about a traditional economy?

Based on practices that have been passed on from ancestors

Nations must answer 3 basic economic questions. Which of the following is NOT one of them?

Where should we sell our goods and services?

Which of the following is true about scarcity?

It is the limited supply of resources

Which of the following is TRUE concerning the unemployment rate?

The higher it is the greater the chance of economic slowdown

Which of the following is NOT true about inflation?

A higher inflation rate means money is worth more

Which of the following is TRUE about socialism?

There are more social services like free medical care

Which of the following is NOT true about a command economy?

The government provides programs for those who need help

Which of the following is TRUE about capitalism?

The political system is usually a democracy

Which of the following is NOT true about communism?

Entrepreneurship and competition are important

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MP Economics

30 termsStudBud Administration1,147 plays

Unit 5

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Questions 30

Answers

1
Which of the following is true about a market economy?
There is no government involvement in economic decisions.
Based on practices passed on from ancestors
Animal gathering is how most people earn their living.
The Government controls everything and makes the decisions
2
Which phase of the business cycle is a period of economic slowdown for at least 6 months?
Expansion
Trough
Recession
Recovery
3
Which of the following is a traditional economy?
USA
Germany
Cuba
Villages in South America
4
Supply is greater than demand
Competition
Equilibrium
Surplus
Shortage
5
The consumer price index and the producer price index measure what?
Productivity
GDP
Unemployment
Inflation
6
Which of the following is NOT a goal of a healthy economy?
Nice houses for everyone
Stable prices
Increased productivity
Decrease unemployment
7
An economy is
Way a country provides for the wants and needs of its people
The people who make money
The government
All the things used to product goods and services
8
Customer willingness to buy a product
Profit
Supply
Demand
Equilibrium
9
Which of the following is true about a traditional economy?
Based on practices that have been passed on from ancestors
Customers make economic decisions through their purchases.
Government controls everything and makes decisions
Government provides social programs for those who need help
10
Which of the following is NOT a factor of production?
Entrepreneurship
Land
Factories
Labor
11
Nations must answer 3 basic economic questions. Which of the following is NOT one of them?
Where should we sell our goods and services?
For whom should the goods and services be produced?
What goods/services should be produced?
How should the goods/services be produced?
12
Which of the following is a market economy?
Australia
Russia
Villages in South America
Cuba
13
When price goes up, demand goes up.
True
False
14
Which of the following is true?
All economies are mixed
There are a lot of true market economies
Most economies are mixed
There are a lot of true command economies
15
Which of the following is NOT an economic measure?
GDP
Unemployment rate
Scarcity
Inflation rate
16
Which of the following is true about scarcity?
It is the limited supply of resources
It is one of the factors of production
Every country has all the resources they need
Scarcity is not a big deal
17
Which of the following is TRUE concerning the unemployment rate?
The higher it is the greater the chance of economic slowdown
It isn't that important
Not many nations keep track of this.
It is a measure of how many people have jobs
18
When supply and demand are equal
Surplus
Shortage
Profit
Equilibrium
19
When price goes up, supply goes up.
True
False
20
Which of the following is a command economy?
Switzerland
North Korea
Australia
USA
21
Which is a time when it is nearly impossible to find a job and poverty results?
Recovery
Trough
Depression
Expansion
22
Which of the following is NOT true about inflation?
A higher inflation rate means money is worth more
A low inflation rate (1%-5%) is good
A double-digit inflation rate devastates an economy
It refers to rising prices
23
Which phase of the business cycle is when the economy is strong and there is low unemployment?
Trough
Expansion
Depression
Recession
24
Which of the following is TRUE about socialism?
The United States and Japan are examples
There are more social services like free medical care
The government assigns housing, schools, and occupations
Cuba, North Korea, and China are examples
25
There are 3 types of economies. Which of the following is NOT one of them?
Traditional
Command
Future
Market
26
Which of the following is NOT true about a command economy?
The Government controls the factors of production
The government provides programs for those who need help
The Government makes all the decisions
The government decides who receives what is produced
27
The amount of product producers are willing to make and sell
Demand
Surplus
Supply
Equilibrium
28
Demand is greater than supply
Equilibrium
Shortage
Profit
Surplus
29
Which of the following is TRUE about capitalism?
There is little to no economic freedom
The political system is usually a democracy
The government assigns housing, schools, and occupations
The main goal is to keep prices low and provide employment
30
Which of the following is NOT true about communism?
The government runs everything
Entrepreneurship and competition are important
There is only one political party
The government assigns housing, schools, and occupations

MP Economics Flashcards | StudBud