Unit 2B Review 2025

Family X runs a small garden where they grow just enough food to meet their daily needs.
Family Y works full-time on a coffee farm earning hourly wages.
Family Z operates a large-scale corn farm spanning 5,000 acres for commercial sale.
Family W crafts and sells handmade baskets at the local market.

Which family is practicing subsistence farming?

• Family Z

• Family Y

• Family W

• Family X

Answer explanation

Family X is practicing subsistence farming as they grow just enough food to meet their daily needs, unlike the other families who are engaged in commercial or wage-based activities.

We are the Tanaka family, living a typical life for our country. The four of us share a 1,700 sq. ft. apartment. Our home is packed with technology—we have four tablets, each of us owns an iPhone, there are four televisions, three computers, two cars, a microwave, a gaming console, and five different streaming subscriptions. We own quite a lot of things. Dad works as an engineer for a tech company, and Mom is a marketing manager for a large retail brand. Both of them have well-paying jobs, and the kids go to school. We're hoping to buy a second home to rent out for extra income. Most of the TV shows and movies we watch are from the U.S.

The Tanaka family live in a-

• Developed Nation

• Newly Industrialized Nation

• Less Developed Nation

Answer explanation

The Tanaka family's lifestyle, including their technology ownership, well-paying jobs, and plans for a second home, indicates they live in a Developed Nation, characterized by high income and advanced infrastructure.

Which of the following characteristics are typical of an advanced economy? Select TWO correct answers.

• Has a robust system of infrastructure

• Experiences low income per individual

• Has limited economic diversity

• Produces goods by processing natural resources

• Primarily depends on farming for survival

Answer explanation

Advanced economies typically have a robust system of infrastructure to support growth and development. They also produce goods by processing natural resources, reflecting economic diversity and industrial capabilities.

Which of the following are the main indicators used to measure the Human Development Index (HDI)?

• Population growth, technology access, and wealth

• Health, wealth, and education

• Economic growth, employment rates, and technology

• Political stability, natural resources, and infrastructure

Answer explanation

The Human Development Index (HDI) is measured using three main indicators: health (life expectancy), wealth (GNI per capita), and education (mean years of schooling). Thus, the correct choice is health, wealth, and education.

Which of the following statements accurately describes the differences between communism and a free enterprise system?

• In a free enterprise system, prices are determined by government regulations, while communism relies on supply and demand.

• A free enterprise system is based on supply and demand, where consumer choice influences prices, whereas in communism, the government sets the prices of goods.

• Communism allows for free market competition, while a free enterprise system depends on government control over prices.

• Both communism and a free enterprise system are primarily influenced by supply and demand.

Answer explanation

The correct choice highlights that a free enterprise system operates on supply and demand with consumer influence on prices, while in communism, the government controls pricing, contrasting the two economic systems.

Tweet from @DentonTechNews
October 16, 2023

“Large crowds are gathering outside the AT&T store as excitement builds for the launch of the new Google Pixel phone! Supplies are limited!”

What type of economy is reflected in the headline above?

• Traditional

• Socialist

• Free Enterprise

• Communist

Answer explanation

The excitement for the new Google Pixel phone and limited supplies indicate a competitive market where consumer choice drives demand, characteristic of a Free Enterprise economy.

One of the fundamental concepts of communism is:

• adhering to ancestral traditions
  

• competition among producers for profit

• state control over production resources

• privatizing businesses to encourage development

Answer explanation

One of the core principles of communism is state control over production resources, which contrasts with competition for profit and privatization. This ensures that resources are managed collectively rather than individually.

Which of the following characteristics is most commonly associated with a traditional economy?

• Focus on mass production and technological advancements

• Reliance on government intervention to regulate prices

• Emphasis on subsistence agriculture, customs, and barter trade

• Use of digital currency and online transactions

Answer explanation

A traditional economy is characterized by subsistence agriculture, customs, and barter trade, focusing on meeting basic needs rather than mass production or technological advancements.

In Brazil, the government controls major sectors and regulates certain prices. Nevertheless, private enterprises are promoted, and numerous companies are actively listed on the Brazilian Stock Exchange. The economic system of this country can be BEST classified as-

• Mixed Economy

• Socialist Economy

• Capitalist Economy

• Planned Economy

Answer explanation

Brazil's economy is classified as a Mixed Economy because it combines government control over major sectors and price regulation with the promotion of private enterprises and a vibrant stock market.

Which of the following statements best describes a theocracy and its functioning?

• A form of government where elected officials make decisions based on majority rule and public opinion.

• A political system in which religious leaders control the government, and laws are based on religious doctrines.

• A system where the military governs the state, often following a coup d'état.

• A type of democracy where citizens vote directly on laws and policies without elected representatives.

Answer explanation

A theocracy is defined as a political system where religious leaders govern and laws are derived from religious doctrines, making the second choice the correct description.