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WorksheetsChapter 1 Test Review: Economic Decisions and Systems
Total questions: 50
Worksheet time: 33mins
Name
Class
Date
1.
A command economy is when the government is in control.
a)
True
b)
False
2.
Which of the following countries has a command economy?
a)
USA
b)
France
c)
N Korea
d)
Germany
3.
In a command economy, individuals own the businesses.
a)
True
b)
False
4.
A mixed economy is a combination of traditional and command economies and black markets.
a)
True
b)
False
5.
What is an economic system characterized by central authority that makes most of the major economic decisions?
a)
traditional economy
b)
free enterprise
c)
mixed economy
d)
command economy
6.
What type of economy does the US have?
a)
mixed
b)
command
c)
traditional
d)
market
7.
In a market economy, ____________ decides what needs to be made.
a)
consumer
b)
producer
c)
the government
d)
everyone
8.
How does a market economy work?
a)
divide and conquer
b)
supply and demand
c)
hide and seek
d)
none of the above
9.
Which is an advantage for market economies?
a)
Incredible variety of goods and services
b)
work and businesses face uncertainty
c)
does not produce enough goods
d)
all of the above
10.
Which is an advantage of a traditional economy?
a)
You get to try new ideas
b)
You don't get punished for anything.
c)
You get to do things the way your parents taught you
d)
No one has to do anything they don't want to.
11.
Which of the following is an economic system in which economic decisions are made according to social roles & culture?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
12.
Which of the following is an economic system in which a central, governmental authority decides how to use a country's scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
13.
What is human capital?
a)
Taxes collected from a country's workers
b)
Money paid to workers for producing goods
c)
Skills and education workers have
d)
The amount of goods sold in foreign trade in a year
14.
________ is the most basic economic problem.
a)
Scarcity
b)
Labor
c)
Greed
d)
Capital
15.
Which of the following would be an example of human capital?
a)
The amount of workers who work in a Nike factory
b)
The skills of the shoe designers at Nike
c)
Philip Knight, the CEO of Nike
d)
The land that the Nike headquarters is located on in Beaverton Oregon
16.
The four types of economic systems are:
a)
Traditional, Command, Mixed, & Market
b)
Traditional, Command, Combined, & Market
c)
Communism, Capitalism, Free Market, and Macroeconomics
d)
Microeconomics, Macroeconomics, Individual, and Traditional.
17.
Which of the following is a need?
a)
clothes
b)
car
c)
job
d)
smart phone
18.
How do you satisfy your unlimited wants in a world of limited resources?
a)
by making more money
b)
by making choices
c)
by stealing
d)
by setting a budget
19.
Is this shelter a want or a need?
a)
Want
b)
Need
20.
Which of the following is NOT one of the three basic questions of economics when looking at economic systems?
a)
What goods should be produced ?
b)
What is the price of the goods?
c)
How should the goods be produced?
d)
Who gets to consume the goods?
21.
Type of economy that is based on trading and bartering?
a)
Socialist
b)
Traditional
c)
Free Enterprise
d)
Command
22.
How many major economic questions are there?
a)
1
b)
2
c)
3
d)
4
23.
They wanted to spread the wealth evenly.
a)
Socialism
b)
Communism
c)
Capitalism
24.
Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
25.
People who take a risk by starting a business, who are search of profits, are called what?
a)
President
b)
Entrepreneur
c)
Senator
d)
Factory Worker
26.
This economic system provides the best opportunity for entrepreneurial success, and historically has the greatest success in improving standards of living, and increasing prosperity?
a)
Command Economy
b)
Traditional Economy
c)
Market Economy/Capitalism
d)
Mixed Economy
27.
In a capitalist or market economy, who owns the factors of production?
a)
Households/Individuals
b)
Government
c)
Businesses
d)
Government, businesses, and households
28.
What is the most effective way for consumers to participate in the free enterprise system?
a)
through mail and phone surveys
b)
by protesting and boycotting
c)
by hiring lobbyists and interest groups
d)
by the purchases they make
29.
The concept that people have the right and privilege to control their possessions as they wish.
a)
legal equality
b)
open opportunity
c)
private property
d)
profit incentive
30.
Pizza is an example of a...
a)
Service
b)
Good
c)
Consumer
d)
Value
31.
A dog walker is an example of a...
a)
Service
b)
Good
c)
Consumer
d)
Value
32.
Which of the following is an example of a need?
a)
Diamond Earrings
b)
New Cell Phone
c)
A House or Apartment
d)
Designer Jeans
33.
Which of the following is the best example of a want?
a)
Food
b)
Clothing
c)
Shelter
d)
Sports Car
34.
Soil, minerals, air, water, and coal are all examples of
a)
Fossil fules
b)
Conservation
c)
recycling
d)
natural resources
35.
Johnny has $50 and wants to buy a pair of Nike Shoes that cost $95. He has to settle for a pair of Sketchers for $45. In economic terms Johnny is facing the problem of:
a)
Shortage
b)
Scarcity
c)
Unemployment
d)
Marginal costs
36.
Antonio has an Economic test tomorrow and knows that if he stays up and studies until 11 p.m. he has a good chance of making an A on the test. However he is really tired and knows that if he goes to bed at 10:00 p.m. he can easily make a B on the exam. What is Antonio's opportunity cost if he goes to bed at 11:00 p.m.
a)
An A on the exam
b)
making a B on the exam
c)
Losing one hour of sleep
d)
gaining one hour of sleep
37.
The difference between a good and a service is that:
a)
Goods are available in unlimited quantaties and services are not
b)
Goods are tangible and services are not
c)
Services are available in unlimited quantaties and goods are not
d)
goods help satisfy unlimited wants and services do not
38.
Bowdon Clothing Manufacturing decided several years ago to give up making suits for the public to take a contract with the Federal Government to produce Military Uniforms. Which eceonomic question did they answer.
a)
What to produce?
b)
How to Produce
c)
For whom to produce
d)
All of the above
39.
Tangible and intangible items people produce to sell
a)
consumers
b)
producers
c)
goods and services
d)
opportunity costs
40.
When people wait in line on Black Friday to get a 70" TV, this is an example of
a)
scarcity
b)
consumerism
c)
product marketing
d)
consumer responsibility
41.
________ is the most basic economic problem.
a)
Scarcity
b)
Labor
c)
Greed
d)
Capital
42.
Opportunity Cost is best defined as
a)
The best rejected alternative you give up when making a decision
b)
The price you pay to purchase something
c)
The benefit you gain by making a decision
d)
The amount of debt you take on by making a decision
43.
Which of the following statements is true:
a)
An economist would consider something scarce only if it is limited (not anything else)
b)
A trade off occurs when you give up something you want in order to get something else you want
c)
The economic social goal, economic equity, means everyone gets the same amount of money
d)
In a traditional economy, the government gets to decide the answers to the 3 basic economic questions
44.
If the demand of a product drops, you would expect the price of the product to...
a)
rise
b)
stay the same
c)
go up
d)
decrease
45.
The equilibrium price is the price at which
a)
producers' total revenue is highest
b)
consumers start reducing demand
c)
demand and supply curves intersect
d)
neither demand nor supply will shift
46.
Which of the following terms describes the primary objective of any business?
a)
demand
b)
profit
c)
supply
d)
money
47.
A shortage can also be referred to as
a)
a surplus
b)
an equilibrium
c)
excess supply
d)
excess demand
48.
The demand curve is plotted by using a product's....
a)
prices and qualities
b)
production costs and qualities
c)
prices and quantities
d)
production costs and quantities
49.
Which of the following would cause a change in supply?
a)
A change in market price
b)
A change in technology available
c)
A change in the number of sellers
d)
All of the above
50.
What is an example of a competitive market?
a)
Walmart
b)
Mid-American Energy
c)
Cell service providers
d)
A small town cable provider
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