ECON. Ch. 2 Test

Elements of traditional, command, and market economies are combined in a:

• Pure Market Economy

• Mixed Economy

• Socialist Economy

• Centrally-Planned Economy

Freedom of economic choice is one of the chief advantages of a:

• Traditional Economy

• Market Economy

• Command Economy

• Communist Economy

According to Karl Marx, all of history is a struggle between:

• Consumers

• Producers

• Classes

• Businesses

Producers and consumers drive the economy of a:

• Market Economic System

• Mixed Economic System

• Traditional Economic System

• Command Economic System

Government officials deciding the distribution of all resources is a feature of a:

• Mixed Economy

• Traditional Economy

• Market Economy

• Command Economy

The situation where women tend crops and raise children while men hunt is often found in a:

• Traditional Economy

• Market Economy

• Mixed Economy

• Command Economy

In the products market,

• Firms buy goods and services from households

• Firms sell goods and services to households

• Firms buy resources from households

• Firms sell resources to households

The founder of Capitalism

• Adam Smith

• Karl Marx

• Rousseau

• John Locke

Gross domestic product is equal to the market value of all final goods and services:

• Produced domestically during a period.

• Produced domestically during a period minus the depreciation of productive assets.

• Produced by the citizens of a nation during a period.

• Exchanged during a period.

What is the main purpose of a price ceiling set by the government?

• To ensure producers can make a profit.

• To increase government revenue.

• To keep essential goods affordable for consumers.

• To prevent prices from falling below a certain level.