Economics Worksheet: Civics SOL Review

What is the basic economic problem that all societies face?

• Abundance of resources

• Scarcity of resources

• Unlimited wants

• Lack of technology

Which term refers to the value of the next best alternative given up when making a choice?

• Opportunity cost

• Trade-off

• Marginal benefit

• Utility

What type of economy is characterized by government control over resources and decisions?

• Free-market

• Command

• Traditional

• Mixed

In a free-market economy, what determines the prices of goods and services?

• Government regulation

• Supply and demand

• Consumer preferences

• Production costs

Which of the following best describes consumer sovereignty?

• Consumers influence production through their purchases.

• The government controls consumer choices.

• Producers dictate what consumers can buy.

• Prices are fixed by the government.

What is the role of entrepreneurs in the economy?

• To produce goods only

• To take risks and create new businesses

• To regulate prices

• To provide government services

What is inflation?

• A decrease in the overall price level

• An increase in the overall price level

• A stable price level

• A sudden increase in wages

Which of the following is a characteristic of a mixed economy?

• Complete government control

• No government intervention

• Combination of private and public enterprises

• Only traditional methods of production

What do we call the market where goods and services are bought and sold?

• Labor market

• Capital market

• Product market

• Financial market

What is the main purpose of competition in the marketplace?

• To eliminate all businesses

• To lower prices and improve quality

• To create monopolies

• To restrict consumer choice