What is an Economy? Review

True or False - To obtain the things you want and need, you use both natural and human resources.

Which of the following is an example of a nonrenewable resource?

• water

• coal

• trees

• wind

Which of the following are all factors of production?

• land, labor, and gross domestic product

• labor, service industries, and capital

• land, labor, and capital

• capital, service industries, and labor

In which type of economy are most of the means of production privately owned?

• traditional economy

• command economy

• mixed economy

• market economy

Which of the following is an example of a job in the primary sector, which produces raw materials and basic goods?

• auto mechanic

• physician

• farmer

• banker

In economics, what is meant by the term productivity?

• a measure of what is produced and what is required to produce it

• the level at which a person, group, or nation lives

• the percentage of the labor force that is employed

• the total dollar value of all final goods and services produced in a year

In which type of economic system are resources distributed mainly through families?

• traditional economy

• market economy

• command economy

• mixed economy

A _____ is also referred to as capitalism.

• traditional economy

• market economy

• command economy

• mixed economy

In which type of economy are the production and distribution of resources controlled by the government?

• traditional economy

• market economy

• command economy

• mixed economy

What type of economic system does the United States have?

• traditional economy

• market economy

• command economy

• mixed economy