1. The basic economic questions most directly treat the issue of. A. Resource allocation. B. Constraints. C. Formal education. D. Mixed economies. E. Property rights. 2. Which of the following describes why the basic economic questions need to be answered? A. Economic systems are mixed in real-life economies. B. Where to find the next valuable resource is difficult to determine. C. Scarce resources require trade-off decisions. D. A healthy system requires a strong organizational principle. E. Price allows people to compare a numerical value to diverse goods and services. 3. Which statement is true of a market economy? A. It depends more on self-interest than a command economy does. B. It eliminates the problem of scarcity, unlike a command economy. C. It prioritizes the public good over personal freedom. D. It requires the approval of a regulatory body for innovation. E. It ensures that everyone will accumulate wealth. 4. What is the key difference between command and market economies? A. A market economy places a strong emphasis on a small group holding responsibility for planning production. B. A command economy considers private property essential to protect, while a market economy places no value on private property. C. The basic economic questions are unaddressed in a market economy. D. Households answer the basic economic questions in a market economy, while a group of leaders answer them in a command economy. E. A command economy depends much more on the principle of the invisible hand