Unit 2 Knowledge Quiz

What is the study of how people use resources to meet their needs and wants called?

• Economy

• Economics

• Economic System

• Market Economy

Identify the economic system where supply and demand determine prices.

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

Which of the following is a characteristic of a mixed economy?

• Only government control

• Only private control

• Both private and government control

• No control

Which of the following best describes a luxury?

• Essential for survival

• Expensive but not necessary

• A basic need

• A government service

In which type of economy does the government control production and prices?

• Market Economy

• Mixed Economy

• Command Economy

• Traditional Economy

What is the term for the value of the next best alternative you give up when making a choice?

• Luxury

• Opportunity Cost

• Need

• Want

How do economists contribute to understanding economies?

• By creating goods

• By analyzing data

• By selling services

• By controlling prices

What is the primary focus of an economic system?

• To create new technologies

• To organize how goods and services are produced, distributed, and consumed

• To increase population

• To reduce taxes

Which of the following is an example of a tangible item?

• Haircut

• Car repair

• Food

• Tutoring

Evaluate the benefits and drawbacks of a mixed economy. Which statement is true?

• It eliminates government intervention

• It combines elements of both market and command economies

• It relies solely on consumer choice

• It prevents private enterprise