Economic Systems

A country has a reputation of poor quality products. Which economic system is the country most likely operating under?

• Traditional

• Command

• Market

According to the law of diminishing returns, increasing a single system input:

• Always leads to larger and larger gains of output

• Always lead to smaller and smaller efficiency in output

• Eventually leads to smaller and smaller gains in output

• Eventually leads to larger and larger productivity

The government limits harvesting of trees on government owned land. What basic question is being asked?

• What will be produced?

• How will it be produced?

• Who gets what is produced?

What is a good measure of a country's productivity?

• Standard of living per capita

• Business investment rate

• Unemployment rate

• Gross Domestic Product per person

If the time it takes a company to make its product increased from the previous year, then the company's productivity is:

• Increasing

• Decreasing

• Not Changing

Michael is worried that he might be laid off. Michael is most likely living in which type of economic system

• Market

• Command

• Traditional

The government mandates that gasoline will contain 10% ethanol. What basic economic question?

• What will be produced

• How will it be produced

• Who gets what is produced

An economic system is how society organizes itself to allocate limited resources in the ----------- of products.

• Production and distribution

• Production and consumption

• Consumption and Distribution

Which of the following is an economic institute in the U.S?

• Consumers

• Banks

• Government

• Wholesalers

What is the founding principle of the U.S economy?

• Free enterprise

• Hard work

• Saving Money

• Private property