Economics Quiz

Why is a profit motive important in many economies?

• A. People would not use coupons without it.

• B. Businesses could not advertise without it.

• C. Businesses could not set prices without it.

• D. People would not start businesses without it.

Which investment option would fall on the upper right portion of the graph?

• stocks

• savings accounts

• certificates of deposit

Which nation faced a U.S. trade embargo in the 1960s?

• Cuba

• Ecuador

• Japan

• Mexico

Match the economic term with its description.

• Natural Resources

• ___

  money that a business uses to buy the items

  needed for the business to function

• Financial Capital

• ___

  human time, effort, skills, and talent needed to

  produce goods

• Capital

• ____ raw materials needed to produce goods

  
  

• Labor

• ___

  items such as tools, machines, factories, and

  office equipment needed for a business to

  function

Match the name of the country with its type of economy.

• China

• ___Socialist

• Taiwan

• ___Capitalist

• Sweden

• ___Communist

Match the type of industry with its description.

• Primary Industry

• ___

  A grocer sells cheese in a market.

• Secondary Industry

• ___

  Inspectors examine the quality of cheese.

• Tertiary Industry

• ___

  Cheese makers use milk from dairy cows to

  produce cheese.

• Quaternary Industry

• ___

  A farmer sells milk produced from dairy

  cows.

Match the name of the organization with its description.

• World Trade Organization

• works with nations to decrease

  embargoes, taxes, and quotas

• International Monetary Fund

• offers emergency loans to countries

  with unstable economies

• World Bank

• provides loans for large projects, like

  building schools, in developing

  countries

Which of the following scenarios accurately illustrates the concept of economic interdependence?

• An entrepreneur decides to open a bakery and produces bread for the neighborhood.

• Good rainfall allows a farmer to produce more strawberries and he chooses to expand his

  business.

• Japan lacks iron to make steel, so Japan enters into a trading relationship with Australia and

  Brazil, who supply Japan with iron ore.

• South Africa is rich in diamonds, gold, and mineral resources, so South Africa creates a mining

  industry that produces much wealth.

Why must governments ensure that corporate taxes are not too high?

• Public services will suffer.

• Businesses will not make a profit.

• The government cannot invest in education.

• The government cannot invest in national defense.

How can customers feel certain that their money stored in U.S. banks is safe?

• Money deposits are insured.

• Many banks have armed guards.

• Most banks have good security systems.

• It is very difficult to steal money from banks.