U1 Quiz Review

In a traditional economy, resource use and social behavior are dictated by ritual, habit, or custom.

Wants are basic requirements for survival, and needs are what we would like to have that is unnecessary for survival.

The economy is made up of two groups: producers and consumers.

How would you categorize goods?

The four factors of production are land, labor, capital, and _______

The United States is considered a traditional market economy

Citizens must learn to make their own decisions, take initiative, interpret prices & fend for themselves in free markets

Which of the following lists economic systems in order from least to most flexible?

Few entrepreneurs fail, but most survive and all become wealthy.

What is a product's value based on?

Market economies produce a small variety of goods.

The factors of production are bought and sold where?

What is scarcity the result of?

. Which of the following represents a place where the transition to capitalism is nearly complete?

The main ______ of a traditional economy is that it tends to

. One of the characteristics of a capitalist free enterprise economy is _______

Every decision we make has trade-offs or choices.

Division of labor, specialization, and interdependence can improve:

Which nation today is the most striking example of successful privatization?

What does capital include

Which type of economy is most prevalent in the world today?

Economic growth occurs when a nation’s total output of goods and services decreases over time.

Human capital provides a major contribution to ____ so investing in _____ can have a substantial payoff in the future.

When more products can't be produced with the same amount of resources, productivity goes up.

The ruling part in a capitalist or communist economy fears the loss during a transition to socialism

What does labor include?

Economic equity means that it is illegal to discriminate on the basis of age, sex, race, religion, or _______

Many countries overestimate the costs of converting to capitalism.

In a mixed economy, the state's involvement in economic decisions can vary considerably

All models are based on what?

Which of the following is largely responsible for the growth of a free enterprise system?

Economics analyzes federal activity to discover why things work and how things happen.

Which of these statements is descriptive of a market economy?

The three basic economic questions about the use of resources are:

. Which of these helps explain why mixed economies develop?

When more and better product are produced in a free market capitalistic system, wealth is created.

Investing in new ______ resources involves risks and sacrifices today to increase future production.

Economics predicts what may happen in the future, based on current events and trends

All people and businesses are connected by markets.

Economics explains how and why an economy works, allowing economic problems to be addressed more easily in the future.