Unit 1 Vocabulary Quiz

Emma and Kai are running a lemonade stand. They notice that when they lower the price of lemonade, more people buy it, and when they raise the price, fewer people are interested. Which economic model explains how the price and quantity of their lemonade are determined in this market?

• Supply and Demand

• Mixed Economy

• Socialism

• Dictatorship

Benjamin is studying different economic indicators for his class project. He wants to understand what is typically measured by GDP. Can you help him?

• Economic Growth

• Free Enterprise

• Communism

• Competition

Aleen was reading about different forms of government for her history project. She discovered a system where absolute power is concentrated in one leader or a small group. Which form of government is this?

• Socialism

• Dictatorship

• Market Economy

• Capitalism

In which economic system does the government make all decisions about production, distribution, and pricing?

• Free Enterprise

• Command Economy

• Mixed Economy

• Market Economy

Abigail is studying different economic systems in her economics class. She learns about a system where prices are determined by market forces rather than a central authority. Which economic system is this?

• Mixed Economy

• Market Economy

• Command Economy

• Socialism

Which economic system combines elements of both market and command economies?

• Mixed Economy

• Free Enterprise

• Capitalism

• Communism

Mia is trying to understand how her family decides to spend their monthly budget on groceries, utilities, and savings. What is the study of how individuals, businesses, and governments allocate scarce resources?

• Economics

• Entrepreneurship

• Competition

• Socialism

Kai and Lily both own bakeries in the same neighborhood. They are trying to attract more customers by offering unique pastries and better prices. What is this rivalry between their businesses called?

• Competition

• Command Economy

• Socialism

• Trade-off

Which economic system aims to distribute wealth and resources more equally among the population?

• Socialism

• Free Enterprise

• Dictatorship

• Market Economy

What type of unemployment occurs due to the natural ups and downs of the business cycle?

• Frictional Unemployment

• Cyclical Unemployment

• Structural Unemployment

• Seasonal Unemployment