Mid-Term Exam Review-Economics

Economic system where government controls everything.

• Market
• Command
• Mixed
• Free Enterprise

Type of Economy that is half command and half market

• Traditional
• Command
• Market 
• Mixed

Type of economic system where there is no government control.

• Mixed
• Market
• Free Enterprise
• Command

Capitalism is most closely related to which type of economic system?

• Command
• Traditional
• Free Enterprise
• Mixed

If the supply of a good is higher than the demand, what happens to the price?

• It stays the same
• Price goes down
• Price goes up
• It's FREE!!

An increase in competition would have what effect on price?

• Price goes up
• Price stays the same
• Price goes down
• It explodes

If there is no competition in your market, how would that impact your business?

• You could charge more for your product
• You would make more
• You would hire more employees
• You would charge less for your product

New technology that increases the speed of production would have what impact on the prices of goods?

• Prices would lower
• Prices would increase
• Prices would stay the same
• Business would close

In a ______________ economic system, the government owns resources and controls production, prices, and wages

• traditional

• market

• command

• mixed

What is a consumer?

• a person who takes things

• a person who purchases goods and services for personal use

• a person who takes good away

• the economic factors affecting the price, demand, and availability of a commodity