Production Possibilities Curve and Economic Systems Quiz
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Questions and Answers

What does a point on the interior of the Production Possibilities Curve (PPC) signify?

  • Inefficiency (correct)
  • Optimal production
  • Unattainability
  • Efficiency
  • Which economic system relies on traditions to determine economic decision-making?

  • Capitalist market economy
  • Subsistence economy (correct)
  • Mixed economy
  • Socialist/command economy
  • What characterizes a 'barter' or 'primitive' economy?

  • Reliance on money as a medium
  • Specialization and industrial sector
  • Direct swapping of goods for goods (correct)
  • Surplus for exchange and investment
  • Why are economies 2 and 3 often referred to as 'exchange' or 'modern' economies?

    <p>They use money as a medium</p> Signup and view all the answers

    Which economic system relies on both markets and governments to allocate resources?

    <p>Mixed economy</p> Signup and view all the answers

    What is the key difference between points on the PPC and points beyond the PPC?

    <p>Unattainability</p> Signup and view all the answers

    What type of economic system does Australia have?

    <p>Mixed-market economy</p> Signup and view all the answers

    What is a characteristic of subsistence economies?

    <p>Absence of markets</p> Signup and view all the answers

    In subsistence economies, how are the 3 basic economic questions answered?

    <p>Through family/tribal decisions</p> Signup and view all the answers

    What is a key feature of subsistence economies regarding production?

    <p>Labour-intensive methods</p> Signup and view all the answers

    What role do customs and traditions play in subsistence economies?

    <p>They have a large influence</p> Signup and view all the answers

    What is the level of technology like in subsistence economies?

    <p>Low level of technology</p> Signup and view all the answers

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