Unit 1: Economy quiz

What type of economy is controlled by the government?

• Traditional
• Market
• Mixed
• Command

Consumers have the most influence in determining which goods are produced in what type of economy?

• Traditional
• Market
• Mixed
• Command

The Cherokee Indians live in the mountains in North Carolina where they hunt and gather their food, barter with other tribes, and do the specific job their parents do. What type of economy is this?

• Traditional
• Mixed
• Market
• Command

What type of economy has consumers and producers making most of the decisions but the government makes some as well.

• Traditional
• Command
• Market
• Mixed

What is Gross Domestic Product (GDP)?

• A country's total amount of goods and services produced in one year
• Products for gross feet
• Products for teachers

Someone who starts their own business to provide jobs for workers is known as a/an

• Entrepreneur
• Prime Minister
• President

When a country has educated and healthy workers, they probably invest in _____________ _____________.

• Human Capital
• Capital Goods
• Factories

________________ has made international trade possible in the world.

• Trade Barriers
• Opportunity Cost
• Exchange Rates

Which of the following would be MOST helpful to improving a country's standard of living?

• Decreasing the literacy rate
• Increasing the literacy rate
• Reducing the number of factories3

A market economy is very different from a command or a traditional economy. What is the difference?

• Competition between government and consumers is allowed
• The government controls the agricultural department but not producers
• Competition between businesses is allowed