1. What is the basic economic problem that societies must solve? A Who will consume the goods and services?
B How will the goods and services be produced?
C What goods and services should be produced?
D How to allocate resources in order to best satisfy the needs and wants of people.
2.
In which economic system are price signals, resulting from supply and demand forces, the only determining factor for the goods and services that the economy produces?

A a market economy
B a traditional economy
C a mixed economy
D a command economy

3.
How do property rights influence the exchange of goods and services in the market?

A Property rights determine ownership of resources among businesses, individuals, and governments.
B Property rights prevent market failures from arising in an economy.
C Property rights allow consumers' wants and needs to control the output of producers.
D Property rights prevent producers from exhibiting profit-seeking behavior.

4.A traditional economy is an economy where

A economic decisions are based on price signals from supply and demand forces.
B economic decisions are based on traditions, culture, and beliefs.
C economic decisions are made by the government.
D economic decisions are made by the government for some resources and are based on supply and demand forces for others.

5. Which economy has the highest level of consumer sovereignty?

A command economy
B market economy
C mixed economy
D traditional economy