Marketing Essentials CH. 3

What is an economy?

• A type of car
• A brand of clothing
• A system by which a country's trade, industry, and money are organized
• A type of food

A free enerprise economy is encouraged by what?

• Government regulation & no private property rights

• High taxes
• Limited competition
• Capitalism & Private property rights

In what type of economy is there no government involvement in economic decisions?

• Mixed Economy
• Command Economy
• Market Economy
• Traditional Economy

What are examples of economic indicators (select all that apply)

• producers

• labor productivity & unemployment rate

• GDP & GNP

• Inflation rate & standard of living

• consumers

Three goals of a healthy economy (select all that apply)

• increased productivity

• increased prices

• decreased unemployment

• stable prices

Name the factors of production?

• Land, Labor, Capital, Entrepreneurship
• Money, Time, Energy, Resources
• Demand, Supply, Price, Quantity
• Goods, Services, Needs, Wants

List the types of economies?

• Traditional, Command, Market, and Mixed
• Traditional, Demand, Market, and Mixed
• Traditional, Command, Market, and Monopoly
• Traditional, Command, Supply, and Mixed

In what type of economy do rituals answers the basic quesions of what, how, and for whom products and services are produced?

• Market Economy
• Mixed Economy
• Traditional Economy
• Command Economy

Explain the concept of scarcity?

• Scarcity refers to the basic economic problem, the gap between limited resources and theoretically limitless wants.
• Scarcity is the abundance of resources.
• Scarcity is the concept of unlimited wants and needs.
• Scarcity is the concept of having unlimited resources.

Explain expansion in the economy

• Increase in the production of goods and services over a period of time
• Decrease in the production of goods and services over a period of time
• Stagnation in the production of goods and services over a period of time
• No change in the production of goods and services over a period of time