ECON Unit 1(B) Review

What is one advantage of a Command Economy?

• Individual freedom for everyone

• Health and public services are available to everyone at little or no cost.

• The government rarely interferes.

• Able to adjust to change gradually

What is a Command Economy?

• CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

• An economic system COMBINING private and public enterprise.

• When production, investment, price, and income are determined centrally by a GOVERNMENT.

• A system that relies on customs, history, and time-honored beliefs.

What is one disadvantage of a Command Economy?

• Requires large bureaucracy, which consumes resources

• Lower standard of living

• Does not produce enough public goods

• Workers and businesses face uncertainty as a result of competition and change.

The limited amount of resources available

• Resource

• Competition

• Scarcity

• Cost

The benefit you give up by choosing to do one thing instead of another.

• Scarcity

• Consumer

• Market

• Opportunity Cost

What is standard of living?

• is a measure of the minimum amount of money thought to be adequate for life

• A measure of how well off the people are in a country

• A lack of money and basic necessities needed for life

Which of the following is NOT one of the three fundamental economic questions?

• For whom are goods and services produced?

• What goods and services will be produced?

• How will we decide who is a citizen?

• How will goods and services produced?

Traditional economies rely heavily on __________ to meet the needs of citizens.

• farming and agriculture

• farming and manufacturing

• manufacturing and agriculture

• agriculture and services

The Soviet Union and North Korea are best described as...

• Command Economies

• Market Economies

• Mixed Economies

• Traditional Economies

The United States is best described as having what type of economy?

• A Mixed Economy

• A Command Economy

• An Agrarian Economy

• A Traditional Economy