Select the statement that best defines the term economy.
|A)||The organized way a nation provides for its population’s needs and wants|
|B)||A political system that defines how resources can be used|
|C)||The same thing as factors of production|
|D)||The measurement of how much a country’s people earn on average|
What is a command economy?
|A)||An economic system where there is no government involvement, the people are in control|
|B)||An economic system in which a government makes economic decisions about what, when, and how much will be produced and distributed|
|C)||It is the economic system most often associated with democratic countries|
|D)||An economic system where the market determines demand|
What are the phases of the business cycle?
|A)||Expansion, recession, trough, and recovery|
|B)||Depression, recession, and peak|
|C)||Expansion and recession|
|D)||Expansion, inflation, recession, and depression|
What are factors of production?
|A)||The resources of a country|
|B)||land, labor, capital, infrastructure, and entrepreneurship|
|C)||land and labor|
|D)||The GNP, the GDP, and the CPI|
A market economy is different than a command economy because
|A)||There is no government involvement in economic decisions|
|B)||It is a traditional economic system|
|C)||it is a mixed economy|
|D)||Businesses cannot decide how much goods to produce|