#1
Which of the following is a feature of a traditional economy?
Barter system of exchange
ExplanationExchange of goods and services through direct bartering rather than using currency.
#2
Which of the following is an example of a capital resource?
Machinery
ExplanationEquipment and machinery used in production.
#3
Which of the following is a characteristic of a market economy?
Consumer sovereignty
ExplanationConsumers have the power to determine what goods and services are produced.
#4
Which of the following is a characteristic of a command economy?
Centralized decision-making
ExplanationCentralized control over economic decisions by the government.
#5
In economics, what does the term 'opportunity cost' refer to?
The value of the next best alternative forgone
ExplanationThe value of what you give up to pursue a certain action or decision.
#6
Which production system involves producing goods based on customer orders rather than stocking products?
Just-in-time (JIT)
ExplanationManufacturing products as needed to minimize inventory costs.
#7
What is the main goal of a market economy?
Allocation of resources based on consumer preferences
ExplanationResources are allocated according to what consumers want and are willing to pay for.