Economy - Chapter 2

10 Questions

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Economy Quizzes & Trivia

A short quiz about Chapter 2 of Economics.


Questions and Answers
  • 1. 
    • A. 

      The method used by a society to produce and distribute goods and services.

    • B. 

      The method used by a society to produce and distribute air and water.

  • 2. 
    • A. 

      The income people receive for supplying money in banana peels.

    • B. 

      The income people receive for supplying factors of production- land, labor, capital or entrepreneurship

  • 3. 
    Define Patriotism. 
    • A. 

      The love of ones country - the passion that inspires a person to serve his or her country

    • B. 

      The love of ones pet or child.

  • 4. 
    Relies on habit, custom, or ritual to deicide what to produce, how to produce it, and to whom to distribute it.
    • A. 

      Traditional Economy

    • B. 

      Extraordinary Economy.

  • 5. 
    Market Economy.
    • A. 

      Economic decisions are made by individuals and are based on exchange, or trade

    • B. 

      Level of economic prosperity

  • 6. 
    The central government alone decides how to answer all three key economic questions.
    • A. 

      Horizontally Planned Economy

    • B. 

      Centrally Planned Economy

  • 7. 
    • A. 

      Financial gain.

    • B. 

      Financial loss.

  • 8. 
    The hope of reward of the fear of punishment that encourages a person to behave in a certain way.
    • A. 

      Incentive

    • B. 

      Self-interest

  • 9. 
    The power of consumers to decide what gets produced
    • A. 

      Socialism

    • B. 

      Consumer sovereignty.

  • 10. 
    Characterized by a centrally planned economy with all economic and political power resting in the hands of the central government
    • A. 

      Communism

    • B. 

      Socialism