Answers EconomicsEconomic Concepts

Economic Concepts — Test Answers

25 verified answers

What kind of economy uses a free-enterprise system?

a market economy

a closed economy

a traditional economy

a command economy

Assessing opportunity cost involves

making choices and dealing with consequences.

reviewing past decisions and changing them.

minimizing profit and loss.

choosing consequences over rewards.

Becoming informed about economics helps a person understand the

why consumers receive tax revenue.

reasons an economy must always be completely regulated.

role of government in regulating production.

reasons a command economy is ideal.

One method for studying opportunity cost is to think in terms of

tradeoffs.

risk and ability.

pros and cons.

trial and error.

Which statement best describes a pure market economy?

Producers and consumers make some economic choices while the government makes others.

The decisions made by producers and consumers drive all economic choices.

The government determines economic choices and makes most decisions.

Producer intervention in economic choices is strictly forbidden.

Did you find these answers helpful?

More from this Course