Question 1

In a traditional economy, how are economic decisions made?

Accepted Answer

custom and habit

Answer

combination of consumers and producers

Answer

government leaders

Answer

consumers and planners

Question 2

In a command economy, how are the economic decisions made?

Accepted Answer

government planners

Answer

combination of consumers and planners

Answer

custom and habit

Answer

consumers and the market

Question 3

Examples are water, land, minerals, and air.

Accepted Answer

Natural resources

Answer

Entrepreneur

Answer

Human capital

Answer

Capital goods

Question 4

What is an embargo?

Accepted Answer

a halt to trade with a particular country

Answer

a tax paid by the producer before he can sell his goods

Answer

a limit on the amount of goods allowed into the country

Question 5

The most common economy would be…

Accepted Answer

mixed

Answer

traditional

Answer

command

Answer

market

Question 6

Who takes on the financial risk in starting a new business in a market economy?

Accepted Answer

individual business people

Answer

government planners

Answer

combination of planners and investors

Answer

consumers

Question 7

Government is not involved and individuals are free to set their own prices.

Accepted Answer

Market

Answer

Mixed

Answer

Traditional

Answer

Command

Question 8

What is a quota?

Accepted Answer

a limit on the amount of foreign goods allowed into a country

Answer

a decision to prevent certain goods from being imported at all

Answer

a tax placed on imported goods when they enter the country

Question 9

In a market economy, how are the economic decisions made?

Accepted Answer

individuals starting new businesses

Answer

government planners

Answer

consumers and the market

Answer

custom and habit

Question 10

What is human capital?

Accepted Answer

skills and education workers have

Answer

the amount of goods sold in foreign trade in a year

Answer

taxes collected from a country’s workers

Question 11

This type of economy can be useful during times of war or emergencies.

Accepted Answer

Command

Answer

Traditional

Answer

Mixed

Answer

Market

Question 12

Which would be a problem for a community with a traditional economy?

Accepted Answer

People in the country begin to want products that cannot be made locally.

Answer

Older villagers show workers to  make the products they have been making.

Answer

People in the village find ways to make their products more efficiently.

Answer

The price of computers begins to rise rapidly.

Question 13

Individuals are encouraged to open businesses, but the government does regulate.

Accepted Answer

Mixed

Answer

Market

Answer

Traditional

Answer

Command

Question 14

Hunters and gatherers are an example of this type of economic system.

Accepted Answer

Traditional

Answer

Mixed

Answer

Market

Answer

Command

Question 15

Which would be a problem in a command economy?

Accepted Answer

Starting a business would require permission.

Answer

People would get rich.

Answer

Individual business people would risk their own money to produce goods.

Question 16

Which is an example of a natural resource?

Accepted Answer

deposit of coal

Answer

hydroelectric dam

Answer

irrigation canal

Answer

factory

Question 17

Health care, education, and training can have a positive influence on this.

Accepted Answer

Human capital

Answer

Capital goods

Answer

Entrepreneur

Answer

Natural resources

Question 18

What is a tariff

Accepted Answer

a tax on goods

Answer

forbidding trade

Answer

limit on trade

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