Question

20] You would expect a society with a traditional economy to have most of its economic activity directed toward:
A) agriculture.
B) manufacturing.
C) production of services.
D) real estate management.

[21] In a market economy, the willingness and ability of buyers to purchase goods and services helps to:
A) set the prices of those goods and services.
B) determine who gets the goods and services.
C) determine what goods and services will be produced and in what quantities.
D) all of these answer choices are correct.

[22] Private property rights:
A) are one of the defining elements of capitalism.
B) are essential to the operation of a market economy.
C) allow individuals to own and use resources, goods, and services as they choose.
D) all of these answer choices are correct.

[23] An economic system with free enterprise, private property rights, and economic decision-making in a market environment is:
A) socialism.
B) capitalism.
C) individualism.
D) none of these choices are correct.

[24] In a circular flow model of a market economy, households:
A) are buyers and businesses are sellers in input markets.
B) are buyers and businesses are sellers in output markets.
C) sell resources to businesses in output markets.
D) sell goods and services to businesses in input markets.

[25] Which of the following transactions would occur in a resource market?
A) Taking a job designing websites.
B) Renting an automobile while on vacation.
C) Taking your dog to the vet for a check-up.
D) Purchasing a computer to do your class assignments.

[26] In the circular flow model:
A) resources go from businesses to households in input markets.
B) income flows to households from businesses in output markets.
C) households are buyers and businesses are sellers in input markets.
D) businesses are sellers and households are buyers in output markets.

[27] According to the circular flow model, money flows from businesses to households in:
A) input markets.
B) output markets.
C) both input and output markets.
D) neither input nor output markets.

[28] According to the circular flow model, land, labor, capital, and entrepreneurship flow from:
A) households to businesses in input markets.
B) businesses to households in input markets.
C) households to businesses in output markets.
D) businesses to households in output markets.

[29] According to the circular flow model, payments for goods and services flow from:
A) households to businesses in input markets.
B) businesses to households in input markets.
C) households to businesses in output markets.
D) businesses to households in output markets.

[30] An example of a transaction in an output market is:
A) the purchase of labor services by a business.
B) the purchase of a new home by an individual.
C) the purchase of a building by an auto dealership.
D) all of these answer choices are correct.

Answer 1

20) Option A. This is because a traditional society is usually primitive with no technological development for settlement for industries. Subsistence agriculture is prevalent.

21) Option D. This is because market economy allows buyers and sellers to determine prices and quantities as well as type of goods produced.

22) Option D. Private property rights are essential because market economy is based on ownership of resources where buyers and sellers allocate goods and services

23) Option B

24) Option B

25) Option A

26) Option D

27) Option A

28) Option A

29) Option C

30) Option B