1. ______Which Is Based Mainly on Individual Choice?

Name: ______Period: ______

Spiral #8

1. ______Which is based mainly on individual choice?

a. command economy b. traditional economy c. mixed economy d. market economy

2. ______What financial difficulty do people often face when opening a sole proprietorship? a. many government fees b. paying shareholders profits c. limited funds for startup d. high salary for company president

3. ______The desire and ability to produce and sell a product is a. Demand b. production c. profit d. supply

4. ______Which of the following statements is an advantage of a command economy? a. Economic decisions are well guided. b. The economy attempts to provide for everyone. c. The economy is rarely short of needed goods d. Economic decisions do not cause much suffering.

5. ______Simplified representations of complex economic activities are called economic a. Curves b. models c. prototypes d. templates

6. ______Which of the following categories is most likely to have inelastic demand? a. goods that have many substitutes b. goods that have many complements c. goods that have no substitutes d. goods that have no complements

7. ______Faster, safer, and cheaper transportation has contributed to the development of a a. global economy b. market economy c. mixed economy d. traditional economy

8. ______In the mixed economy a. economic problems are solved by the government and market b. economic decisions are made by the private sector only c. economic allocation is achieved by the invisible hand d. economic questions are solved by the government

9. _____ The costs of production and ______do not directly impact demand. a. consumer tastes b. government regulation c. consumer income d. advertising Select the letter of the term, name, or phrase that best matches each description. a. bond b. conglomerate c. corporation d. dividend e. horizontal merger f. multinational corporation g. private company h. public company i. stock j. vertical merger ____ 10. a business owned by shareholders, who own the rights to the company's profits but face limited liability ____ 11. the result of a merger of several companies, each one producing unrelated goods or services ____ 12. shares of ownership in a corporation ____ 13. the combining of two or more companies that produce the same product or similar products ____ 14. a large corporation with branches in several countries ____ 15. part of a corporation's profits that is paid out to stockholders ____ 16. the combining of companies involved in different steps of producing or marketing a product ____ 17. a corporation that issues stock that can be freely bought and sold ____ 18. a contract issued by a corporation that promises to repay borrowed money, plus interest, on a fixed schedule ____ 19. a corporation that controls who can buy or sell their stock