Circle the correct answer for each question. (you don't need to explain why just circle

Which of the following is not a reason why markets are actually an ideal institution for ensuring sustainability?

Question 1 options:

	They signal problems with resource scarcity, through higher prices. Whenever increased scarcity drives prices up, everyone adjusts by using less, substituting more abundant alternatives
	A scarcer and costlier resource creates an incentive to find more
	Since innovation to replace scarce resources can be very unprofitable, a free enterprise system usually takes care of shortages before they ever happen
	A free-market system promotes growth and rising living standards, and a richer society is one that can afford to tackle environmental problems

A _____ economy is a form of economic system in which the factors of production are in public ownership and/or control.

Question 2 options:

	market
	command
	traditional
	mixed marke

A/An ________ economy results from bartering one service for another.

Question 3 options:

	command
	underground
	market
	corrupt

______is based on public ownership or control of the principal means of production. However, this type of economy favours democratic and peaceful methods to achieve their goals.

Question 4 options:

	Socialism
	Democracy
	Dictatorship
	Communism

________requires a democratically elected government to maintain public order and to keep competition free and fair.

Question 5 options:

	Fascism
	Capitalism
	Dictatorship
	Democracy

An economy is a network of __________, in which each person's use of scarce resources must somehow be accommodated to every other's.

Question 6 options:

	dependence
	free enterprise
	interdependence
	independence