Economics Test 2

Question 1

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

Answer 1

Microeconomics

Question 2

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

Answer 2

Macroeconomics

Question 3

economics studies economic behavior as it is

Answer 3

Positive economics

Question 4

Normative economics involves judgements of what economic behavior ought to be

Answer 4

Normative economics

Question 5

An ______ is the way a society uses its scarce resources to satisfy its peoples unlimited wants

Answer 5

economic system

Question 6

_____ economic systems is when families, clans, or tribes make economic decisions based on customs and beliefs that have been handed down

Answer 6

Traditional

Question 7

A _______ economy, the gov. decides what goods and services will be produced and how they will be distributed

Answer 7

command

Question 8

A _____ economy is based on individual choice, not gov. directives. In this system, consumers and producers drive the economy
Producers decide what goods or services they will offer
Individuals act in their own self-interested when they make economic choices

Answer 8

market