Unit 11 Topic 2 Review Game

Mr. Jones used his life savings to open a new restaurant. He spent a great deal of money making sure his business met his state’s strict health codes and advertising the grand opening. Because of this, he was unable to afford the highest-quality ingredients, and customers did not enjoy the food. His restaurant went out of business only two months after opening.

Which does this scenario best illustrate?

• advantages of a mixed economy

• disadvantages of a command economy

• advantages of a tradition-oriented economy

• disadvantages of a market-based economy

Review the headline.

In which economic system is the change described in this headline most likely taking place?

• mercantile

• command

• traditional

• mixed

In Country J, the government owns all of the factories and guarantees that every citizen has a job. The government also provides low-cost health care to every citizen and makes sure that all children receive an education up to the end of high school.

In this scenario, which action would move Country J closer to a market-based economy?

• selling government-owned factories to private investors

• increasing taxes to provide a free college education for every citizen

• charging tuition for public schools to cover the costs of educating the population

• increasing the cost of health care services to make the government more profitable

Which of the following is a disadvantage of a command economy?

• mismatch between production and society’s needs

• little incentive for high quality or innovation

• dishonesty and corruption among economic decision makers

• lack of competition between competitors

Kevin lives in a country where most of the food he and his family eat comes from hunting, fishing, and subsistence farming. Vincent’s family shares food with others when they can. The supply of goods is highly limited, and Vincent has never used money to purchase goods or services.

Based on this scenario, Vincent lives in which kind of economic system?

• mixed

• traditional

• command

• free enterprise

Which statement does not represent the free enterprise system?

• Production decisions seek to satisfy consumer demand rather than benefit society.

• Businesses can earn unlimited profits.

• Only products that people only want or need actually succeed.

• Wealth is distributed evenly.

Review the headline.

What role of government in the U.S. economy is demonstrated best in this newspaper article?

• redistributing wealth

• protecting private property

• enforcing contracts and agreements

• providing public goods and services

Examine the graph.

What occurs when the selling price for popsicles falls within the shaded area of this graph?

• Profit motive decreases.

• There is a surplus of goods.

• There is a shortage of goods.

• Market equilibrium is reached.

Which scenario describes consumer sovereignty influencing a company to stop making a product?

• The materials used to make the company’s product become increasingly scarce.

• The company still has leftover product after reducing its price several times.

• One of the product plants is closed following a workers’ strike.

• Many newspapers refuse to run ads for the product.

Review the headline.

An opponent of the merger described in the excerpt most likely would make which argument?

• The government must avoid creating regulations that will hinder economic growth.

• The government should allow citizens to choose between public and private property.

• The government should protect industries by taking actions to preserve competition.

• The government must enforce all legal agreements between consumers and businesses fairly.