Unit 3 Checkup

What are the 3 economic questions every country must answer?

• What to produce, how to produce, for whom to produce

• How to produce, what is the cost to produce, where to produce

• traditional, market, command

• mixed, autocratic, democratic, command

Traditional economic systems are focused on ______.

• traditions

• basic necessities for survival

• using what is available; barter

• all of the above

Command economic systems are also known as _____ economies.

• supply and demand

• traditional

• planned

• detailed

Market economic systems are based on ____ and ____.

• traditions and demand

• currency and exchange

• supply and demand

• government control and autocracy

Most countries have a ______ economic system.

• mixed

• traditional

• market

• command

Which answer choice is NOT a factor of production (productive resources)?

• human capital

• capital goods

• natural resources

• literacy

This productive resource is based on the skills, knowledge, and experience a person has.

• human capital

• capital goods

• natural resources

• entrepreneurship

Which productive resource includes man made materials need for production?

• human capital

• capital goods

• natural resources

• entrepreneurship

Why does international trade require a system for exchanging currencies?

• to increase production

• to collect currency types from different countries

• countries use different currencies with different values

Specialization helps a country by _____. (Select all that are correct)

• increasing production

• providing cheaper products

• increasing efficiency

• allows for trading with other countries