Econ

What are the three fundamental questions that every society must answer to determine its economic system?

• What will we produce, how will we produce it, and who gets it?

• What will we consume, how will we consume it, and who pays for it?

• What will we import, how will we export it, and who profits from it?

• What will we invent, how will we patent it, and who benefits from it?

According to Karl Marx, what is the single sentence that sums up the theory of communism?

• Distribution of wealth based on individual effort.

• Abolition of private property.

• Government control of all industries.

• Free and equal access to all resources.

In a free market or capitalist economy, who primarily owns the factors of production?

• The government

• Individuals

• A bureaucratic agency

• A collective of workers

Which of the following is a necessary role for the government in a free market economy?

• Controlling all aspects of production and distribution.

• Ensuring that all citizens have identical incomes.

• Maintaining the rule of law and providing public goods.

• Dictating consumer preferences and tastes.

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What type of economy is characterized by production being entirely controlled by the government?

• Free Market Economy

• Mixed Economy

• Command Economy

• Socialist Market Economy

In the circular flow model, how do households primarily earn money?

• By buying goods and services from businesses.

• By selling resources like labor to businesses.

• By receiving transfer payments from the government.

• By producing goods and services themselves.

Which of the following is a role the government plays in an economy?

• Solely controlling all production and distribution.

• Providing public goods and services like roads and firefighters.

• Eliminating all taxes and regulations.

• Only buying products from households.

What does the economic concept of "trade-offs" imply?

• Every economic decision has only positive outcomes.

• There are always solutions that benefit everyone without any cost.

• To gain something desirable, something else must often be given up.

• Economic systems can achieve all goals simultaneously.