Unit 5 Test Review

Front

Which economic term describe the trade-off that would occur from extracting natural gas from an area instead of protecting existing endangered wildlife in that area?
A: implicit cost
B: marginal cost
C: opportunity cost
D: Variable cost

Back

C: Opportunity Cost

Remember, opportunity cost is when you weigh the "opportunity" for some sort of benefit against the negatives it could bring. In this instance, the benefit would be having natural gas to use or sell, but the negatives, or "costs" would be how expensive it is and how much it would impact local endangered wildlife.

Front

Which economic system can be described by the following?

• Based on Historical Norms

• Not found in modern countries

Back

Traditional Economy

Front

Which economic system can be described by the following?

• Central Planning takes place

• Government plans the economy

• The system of the Soviet Union

Back

Command Economy

Front

Which economic system can be described by the following?

• Producers and consumers rule

• Supply and demand

  • Economic system of the United States

Back

Market Economy

Front

Based on the following table, which nation had exports with the greatest value in 2014?

Back

South Korea

Front

Using the table attached, what product would Country A most likely export to Country B?
A: Fruit

B: Steel
C: Aircraft
D: Cell Phones

Back

A: Fruit

Due to the warm climate and long growing season, fruit would make sense. The reason the other answers don't is because Country A has workers that "lack training in technology," so aircraft and cell phones don't fit, and doesn't have "iron deposits," so steel is out.

Front

Based on the table, which event would most likely happen in a command economy?

A: People start businesses to make a profit
B: People do the same jobs their parents did
C: The government decides how many cars will be made
D: The government sells land for the use of mining firms.

Back

C: The government decides how many cars will be made.

In a command economy, the government has total control. This means that people wouldn't start their own businesses, and the government wouldn't be buying land to sell to "private firms." Also, what job your parents did in would not be relevant in a command economy.

Front

What is an advantage of an economic system in which all decisions are made by a central government?

A: People are free to make their own business decisions.

B: Workers inherit their jobs directly from their parents.
C: Individuals can earn profits by investing in businesses.
D: Resources can be used to quickly address and emergency.

Back

D: Resources can be used to quickly address and emergency.

Since the government controls all aspects of a command economy, they can quickly gather and mover resources as needed. Answers A and C would happen in a market economy, and option B would occur in a traditional economy.

Front

Based on the info in the diagram, a command economy would best be placed at which point on the diagram?

Back

Point D

D is just above the statement "more government control of the economy," which aligns perfectly with the description of a Command Economy.

Front

Based on the info in the diagram, which point best represents an economy based on free enterprise (market)?

Back

Point A

"Less government control of the economy" is a way to describe a free enterprise, or market, economy.