Quiz 1

Question 1

There are two basic types of economics in the world today:

Answer 1

Microeconomics

Macroeconomics

Question 2

is the study of individuals, families, and businesses in the economy

Answer 2

Microeconomics

Question 3

is the study of the economy as a whole and is concerned with large-scale economic activity

Answer 3

Macroeconomics

Question 4

studies economic behavior as it is

Answer 4

Positive economics

Question 5

involves judgement of what economic behavior ought to be

Answer 5

Normative economics

Question 6

a _____is the way a society uses its scarce resources to satisfy its people’s unlimited wants

Answer 6

economic system

Question 7

There are three basic types of economic systems:

Answer 7

Traditional economics
Command Economics
Market Economics

Question 8

is an economic system in which families, clans, or tribes make decisions based on customs and beliefs that have been handed down from generations to generation

Answer 8

traditional economy

Question 9

the government decides what goods and services will be produced, how they will be produced, and how they will be distributed

Answer 9

command economy

Question 10

is based on an individuals choice not a governments directives in this system consumers and producers drive the economy

Answer 10

market economy

Question 11

decide what goods or services they will offer

Answer 11

Producers

Question 12

act in their own self-interest when they make economic choices

Answer 12

Individuals

Question 13

consider the resources and needs of the country and allocate those resources according to their judgement

Answer 13

Government officials

Question 14

Examples of Positive economies

Answer 14

The U.S. unemployment rate is 9%

Higher interest rates will reduce house prices

Question 15

Examples of normative economies

Answer 15

The U.S. unemployment rate should be lower

Pollution is the most serious economic problem