Unit 3 Test Review

Which term refers to a condition that exists when our unlimited needs/wants exceed our limited resources?

• Scarcity

• Supply

• Demand

• Surplus

Answer explanation

Scarcity refers to a condition where unlimited needs/wants surpass limited resources, leading to a shortage. This concept is central to economics.

In which country did the Industrial Revolution begin?

• Great Britain (England)

• The United States

• France

• Germany

Answer explanation

The Industrial Revolution began in Great Britain (England) as it was the first country to experience significant industrialization and technological advancements during the 18th and 19th centuries.

Which of the following was NOT associated with early factory working conditions?

• Safe working conditions

• Low wages

• Dangerous working conditions

• Widespread pollution

Answer explanation

Safe working conditions were NOT associated with early factory working conditions, as they were often dangerous and lacked proper safety measures.

What type of economy do most countries in the world have now?

• Mixed economy

• Market economy

• Traditional economy

• Command economy

Answer explanation

Most countries in the world have a mixed economy, which combines elements of both market and command economies to varying degrees.

In which type of economy does the government have little to no role in the production of goods?

• Market economy

• Mixed economy

• Traditional economy

• Command economy

Answer explanation

In a market economy, the government has little to no role in the production of goods, making it the correct choice.

How did the Industrial Revolution impact labor?

• It increased demand for unskilled workers

• It led to the decline of labor unions

• It decreased factory working hours for workers

• It led to improved working conditions for all workers

Answer explanation

The Industrial Revolution increased demand for unskilled workers due to the expansion of factories and industries requiring more labor.

Which of the following is an accurate description of feudalism?

• A social and economic system of relationships that involved land and protection

• A triangle system that shows different levels of society

• A government system in which the king dominated everyone else

• A political system where the catholic church took all the power and wealth

Answer explanation

The accurate description of feudalism is a social and economic system of relationships that involved land and protection.

Which of the following is the BEST description of globalization?

• The process of increased connection between countries through economics, politics, and culture.

• The process of merging countries together into one big world "nation"

• The process of building roads, canals, and bridges to connect all countries around the world

• The process of connecting grassroots efforts to save the environment through sustainability efforts

Answer explanation

The BEST description of globalization is the process of increased connection between countries through economics, politics, and culture.

Which of the following economic systems is characterized by private ownership of businesses and resources, with prices determined by supply and demand?

• Capitalism

• Communism

• Socialism

Answer explanation

Capitalism is characterized by private ownership of businesses and resources, with prices determined by supply and demand.

In a mixed economy, which of the following is true?

• Both the government and private individuals play a role in economic decision-making.

• The government has complete control over all economic activities.

• Resources are allocated based on supply and demand.

• Prices and production levels are solely determined by consumers.

Answer explanation

In a mixed economy, both the government and private individuals play a role in economic decision-making, making this the correct choice.