Econ Unit 2

Which type of economy is when government has all the control?

• traditional

• market

• command

• mixed

Which type of tax in paid on items that you buy?

• income

• property

• payroll

• sales

What happens to prices when demand is high?

• go up

• go down

• stay the same

• things are free

What is the effect on supply when prices increase?

• Supply increases

• Supply decreases

• Supply remains constant

• Supply becomes zero

What is the effect on demand when prices decrease?

• Demand increases

• Demand decreases

• Demand remains constant

• Demand becomes zero

What is the term for the cost of the next best alternative?

• Marginal cost

• Opportunity cost

• Fixed cost

• Variable cost

Which economic system is characterized by private ownership and free markets?

• Command economy

• Market economy

• Traditional economy

• Mixed economy

What type of economy exists when you do what your family has always done?

• command

• traditional

• market

• mixed

What type of economy does the US have?

• command

• traditional

• market

• mixed

Walmart sends a check to the government for the money it has taken out of employees checks.

What type of tax is this?

• sales

• property

• income

• payroll