CE.11 Quiz

Which term below is a selection of an item or action from a set of possible alternatives?

• opportunity cost

• choice

• production

• consumption

Which term below is what is given up when a choice is made (the second-best alternative)?

• opportunity cost

• choice

• production

• consumption

How do producers determine what will be produced?

• They pay attention to consumer preferences and available resources.

• They produce only what the government suggests they produce.

• They roll the dice and hope for the best.

Consumer _____ and ____ determine what is purchased and consumed.

• supply and demand

• income and services

• preference and price

Which of the following statements are TRUE regarding a traditional economy?

(Select 2.)

• Economic decisions are based on supply and demand.

• Economic decisions are based on custom and historical precedent.

• People often perform the same type of work as their parents and grandparents, regardless of ability or potential.

• People choose their careers based on skills and preferences.

Which of the following are characteristics of a

mixed economy?

(Select all answers that apply.)

• In the private sector, individuals and businesses are the owners and decision makers.

• In the public sector, individuals and businesses are the owners and decision makers.

• In the public sector, the government is the owner and decision maker.

• Most economies today, including the U.S. economy, are mixed economies.

• In the private sector, the government is the owner and decision maker.

Which type of resource is the person who has the ideas for new businesses?

• natural

• human

• capital

• entrepreneurship

Which type of resource is tools, equipment, and investment money?

• natural

• human

• capital

• entrepreneurship

A person who buys goods and services

• consumer
• entrepreneur
• resource
• currency

Mason loves science and wants to become a doctor but he is learning how to make clay bricks like his father and grandfather.

• Free Market

• Traditional

• Mixed

• Command