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Economic Concepts — Test Answers

25 verified answers
3

Which of these are influenced by personal economic choices? Choose four correct answers.

A
the manner in which you balance your time between work and leisure
B
the money you decide to spend on leisure products
C
the cost of your rent and utilities
D
the resources you have available
E
the amount of money you put into your savings account
F
the amount of money you spend on a bus pass
5

Which statement best describes a command economy?

A
Government intervention in economic choices is strictly forbidden.
B
Producers and consumers make some economic choices while the government makes others.
C
The government determines economic choices and makes most decisions.
D
The decisions made by producers and consumers drive all economic choices.
6

In free-enterprise systems around the world, there are

A
some restrictions on business ownership but not on business activity.
B
some restrictions on business activity but not on business ownership.
C
some restrictions on business ownership and business activity.
D
no restrictions on business ownership or business activity.
7

The most common economic system in the world is a

A
closed economy.
B
mixed market economy.
C
command economy.
D
traditional economy.
8

One of the three economic questions deals with deciding

A
what goods and services should be produced.
B
how goods and services will be marketed.
C
how consumers will receive products.
D
what the costs of production should be.
10

What are some ways to address unemployment in a market economy? Choose three correct answers.

A
raising more taxes
B
creating new projects
C
promoting hiring
D
increasing regulation
E
lowering restrictions
11

How does a command economy differ from a mixed market economy?

A
In a command economy, citizens have more property rights. In a mixed market economy, citizens have fewer property rights.
B
In a command economy, citizens own all private property. In a mixed market economy, the government owns all public property
C
In a command economy, citizens own all public property. In a mixed market economy, the government owns all private property.
D
In a command economy, citizens have fewer property rights. In a mixed market economy, citizens have more property rights.
13

One of the main questions of economics involves deciding upon the method for

A
distributing goods and services.
B
creating goods and services.
C
enhancing goods and services.
D
pricing goods and services.
14

Private property is land or goods

A
owned by an individual.
B
used by state officials.
C
used for taxation.
D
owned by the government.
15

In a free-enterprise system, consumers decide

A
how to set prices.
B
how to use materials.
C
which services to buy.
D
which goods to export.
16

Which resource is renewable?

A
gold
B
coal
C
minerals
D
lumber
17

One of the three main questions of economics addresses who should

A
produce goods and services.
B
receive goods and services.
C
market goods and services.
D
distribute goods and services.
19

What is the best definition of ownership?

A
Ownership is the right to possess land or goods.
B
Ownership is the right to purchase goods alone.
C
Ownership is the right to purchase land or goods.
D
Ownership is the right to possess land alone.
20

Which of the illustrates an opportunity cost?

A
James has enough money to buy some socks and a book.
B
Amir only has time to study or to play basketball.
C
Lydia does not have enough money to buy a new shirt.
D
Alyssa does not have enough time to study for her test.

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Economic Concepts — Test Answers — Economics