USA ss term 1 final revision

What is the primary characteristic of a market economy?

• Centralized planning

• Government ownership of all resources

• Consumer choice in competition

• Equal distribution of wealth

In a command economy, who makes decisions about resource allocation?

• Consumers

• Government authorities

• Market forces

• Private enterprises

Which economic system relies on customs, traditions, and rituals for decision-making?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

What is opportunity cost?

• The total cost of production

• The value of the next best alternative

• The cost of goods and services

• The cost of government intervention

Which economic concept is illustrated by the production possibilities curve?

• Scarcity

• Supply And demand

• Elasticity

• Comparative advantage

in a mixed economy who determines Resource allocation?

• Government And market forces

• Consumers and producers

• Government authorities only

• Market forces only

What is the role of entrepreneurship in an economy?

• Setting Prices

• Regulating markets

• Innovating and taking risks

• Distributing resources equally

What is the invisible hand in economics?

• Government intervention

• Unseen market forces guiding decisions

• Barter system

• Consumer preferences

Which economic system allows for private ownership of resources, but also government intervention when necessary?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

What is the purpose of fiscal policy?

• Controlling the money supply

• Regulating interest rates

• Influencing government spending and taxation

• Managing Foreign exchange rates