Economy - Chapter 2

10 Questions | By Independentstudy | Updated: Mar 21, 2022 | Attempts: 254

Questions

Settings

Create your own Quiz

A short quiz about Chapter 2 of Economics.

Questions and Answers

1.

What is the economic system?
- 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.

What are factor payments?
- 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.

What is profit?
- 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