Practice Test

Question 1

Which situation best reflects the concept of free enterprise?

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Consumers have a choice between two bakeries in a single city block.

Question 2

Opportunity cost means that something needs to be

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given up.

Question 3

The government has the right to own all land, buildings, and factories in a

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command economy.

Question 4

The factors of production attempt to instill the idea that resources are

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scarce.

Question 5

In the free-enterprise system of the United States, the government

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makes some economic decisions.

Question 6

What role do government agencies play in a mixed market economy?

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They regulate some aspects of production and distribution.

Question 7

In a command economy, a cotton farm floods after a heavy storm. The repair work most likely will be paid by

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the government group that runs the farm.

Question 8

Resources needed to provide goods or services are called

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factors of production.

Question 9

What are the cons of a mixed market economy for most citizens? Choose four correct answers.

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Citizens often purchase their own health care and higher education.; Citizens may pay higher taxes than in other economic systems.; There is no guarantee of steady employment for many citizens.; There may be a sizable gap between rich and poor people.

Question 10

Land is considered a resource because it

Revolt · Accepted Answer

is used to produce things.

Practice Test Answers

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