EPF: Test

Q1. Which is a difference in how economic decisions are made in a mixed economy and a market economy?

• Consumers make economic decisions in a mixed economy, while consumers and government make economic decisions in a market economy.

• Government and consumers make economic decisions in a mixed economy, while consumers make economic decisions in a market economy.

• Government makes all economic decisions in a mixed economy, while consumers make all economic decisions in a market economy.

• Consumers make all economic decisions in a mixed economy, while government makes all economic decisions in a market economy.

Based on the chart, what is the primary difference in how a command economy and a market economy control scarce resources?

• Consumers control the use of scarce resources in a command economy, while the government controls the use of scarce resources in a market economy.

• Producers determine how scarce resources are used in a command economy, while the government determines the use of scarce resources in a market economy.

• The government and consumers determine who uses the scarce resources in a command economy, while only the government determines who uses these in a market economy.

• The government controls the use, supply, and price of scarce resources in a command economy, while consumers and producers control these in a market economy.

1. Which of the following is NOT a common argument in favor of globalization?

• Preservation of local cultural traditions

• Increased economic growth

• Access to a wider variety of goods and services

• Improved international cooperation

4. Based on the chart, which items provide Country X with a favorable balance of trade?

• electronics and fossil fuels

• wheat and fossil fuels

• steel and electronics

• wheat and steel

Question 1: Based on the chart, how has the role of the North Carolina tobacco industry changed in international markets?

• The North Carolina tobacco industry has increased as an export.

• The North Carolina tobacco industry has decreased as an export.

• The North Carolina tobacco industry has increased its share of exports in the international markets.

• The North Carolina tobacco industry has remained stable in income and exports in the international markets.

1. Scarcity requires people to make choices. This outcome is a result of which basic problem in economics?

• Inflation expands purchasing power

• Available resources will never be enough to satisfy all human needs and wants

• Personal expenses increase on an annual basis

• Workers earn more through overtime pay

Use the list below to answer the question:

• What to produce?

• How to produce?

• For whom to produce?

Which best describes how these economic conditions are answered in the United States?

• By holding national elections

• By following traditions and customs

• By the interaction of buyers and sellers

• By the government

1. Which of the following statements is true if a US tariff is placed on all imported cars?

• Domestic producers of cars will be hurt because they will now have more competition.

• Foreign producers of cars will be helped because domestic goods are more expensive now.

• Foreign producers of cars will be hurt because their goods are more expensive now.

• Domestic consumers will be helped because there will be fewer goods to choose from.

9. What role does the US government generally play in the US economy?

• The US has very little control over the US economy and lets the market and consumer

• The US government has a large role in controlling prices and production.

• The US government only controls international trade, not domestic production.

• The US government sets all prices for goods and services.

1. The US has a limited role in the US economy, mostly managing economic decisions through regulations and taxes. What role does the US government generally play in the US economy?

• The US has very little control over the US economy and lets the market and consumer preferences make most of the economic decisions

• The US holds direct control over the US economy and makes most economic decisions at a federal level

• Most economic decisions in the US are determined by social customs, traditions, and religious beliefs

• The US has a limited role in the US economy, mostly managing economic decisions through regulations and taxes