Economics Review

Which of the following is a correct example of a good?

• Banking

• Restaurants

• Food

• Hospitals

What creates scarcity?

• The abundance of resources.

• The difference between wants and reality.

• The similarity between wants and reality.

• The excess of supply over demand.

Define revenue.

• The money earned by selling goods and services.

• The money spent on buying goods.

• The profit made after all expenses.

• The cost of producing goods.

How does specialization benefit businesses?

• It allows businesses to use resources more efficiently and increase production

• It decreases the need for skilled workers

• It reduces the quality of products

• It increases the cost of production

How does competition affect producers and consumers?

• It increases prices for consumers.

• It forces producers to lower quality.

• It forces producers to keep prices close to or lower than their competitors.

• It reduces choices for consumers.

Who makes economic decisions in a market economic system?

• The central government

• Individual consumers and producers

• A council of elders

• International organizations

What is an advantage of a market economic system?

• Little unemployment

• People own their own business

• Lack of competition

• High government control

What is a key feature of a traditional economic system?

• Centralized decision-making

• Technological innovation

• Economic decisions based on customs and values

• High standard of living

Which economic system is also called a centrally planned system?

• Market

• Command

• Mixed

• Traditional

What is a common goal for businesses in a market economy?

• To avoid competition

• To make a profit

• To follow government plans

• To maintain traditions