1. Economies must address how to produce goods and services. In the economy of a certain country, some factories are owned by individuals and private companies, and their other factories are owned and controlled by the government.
A. mixed
B. market
C. traditional
D. command
2. In determining what to produce, how do market economies typically respond to high consumer demand for a product.
A. The government regulates the price of the product
B. Private companies increase production of the product
C. The government sets production quotas until the demand is met
D. Private companies and the government work together to reduce demand
5. In some places decisions about what is to be produced and for whom it will be produced or made by individuals. Some individuals own the factors of production and they and other individuals are consumers. Both producers and consumers are making choices about what to produce and what to consume. This is an example of what kind of economy?
A. Mixed
B. Command
C. Market
D. Traditional
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