Multiple Choice (one point each) Identify the letter of the choice that best completes the statement or answers the question. 2 H I 14 In reality, most modern market-style economic systems today do not reect Adam Smit s pure" free-market Ia. because the Government completely controls the economy. 'b. because the Government has Q interference with the economy Ic. because in each market-style economy there is some level of government regulation, oversight and protection. This leads to what is known as a \"mixed\" economic system. ld. because the Government has adopted the principles put forth in the communist manifesto. I 2. All of the following are true of a Command Economy EXCEPTl la. total government control of the economy. Ib. Cuba and North Korea are command economies. Ic. individuals have an abundance of freedom over their economic future regarding employment and spending. Id. prot is illegal and there is little to no private ownership of property. I 3. Which of the following is NOT a key economic question? Ia. What goods and services should be produced? 'b. How should these goods and services be produced? lc. Who should these goods and services be produced for? 'd. How should it be ensured that goods and services are paid for? I 4. Competition in the U.S. economy acts as an advantage in all of the following ways EXCEPT 'a. it keeps the prices of goods and services balanced. lb. it allows consumers a variety of choices in the marketplace. Ic. it encourages new business owners to enter the marketplace to keep companies from monopolizing the market for a good or service. Id. it promotes the dominance of one company in the market. I 5. Which of the following is characteristic of a traditional economy? Ia. Communities tend to be fast-growing. Ib. They are usually based on light industrial production. lc. They have a high standard of living. Id. Children tend to have the same jobs as their parents did. I 6. All of the following would be considered outputs EXCEPT la. a cheeseburger sold by McDonalds lb. Time magazine sold at Books-a-Million Ic. a screening machine used to press graphics on to t-shirts ld. a cell phone sold online at verizoncom ' 7. A modernized economy with skilled human capital and advanced technology still is unable to provide for the unlimited wants and needs of i_t citizens. This is as a result of which of the following economic concepts? |a_ comparative advantage 3_ specialization lb, opportunity cost d, scarcity 8. Scarcity is best defined as The cost of the next best decision The fact that people have unlimited regarding limitations of time and wants and limited resources money b. The fact that people have limited The opportunity cost of deciding wants but unlimited resources between one tradeoff versus another 9. What is the opportunity cost of a decision?~ 'a. the total cost of all the alternative c. the available, alternative ways that a decisions that could have been made person might have made used their time b. the best possible way the question d. the next best use of your resources; the could have been decided most desirable alternative forgone (given up) in light of the decision you made 10. Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, while Sandy can make 6 tables or 18 chairs. Tables Chairs Mike 20 Sandy 18 a.Mike has an absolute advantage in chairs.