WorksheetsEconomics Basics - Test 1
Total questions: 99
Worksheet time: 2hrs 41mins
Name
Class
Date
1.
a)
need
b)
want
2.
a)
need
b)
want
3.
a)
need
b)
want
4.
a)
need
b)
want
5.
a)
need
b)
want
6.
a)
need
b)
want
7.
a)
need
b)
want
8.
There are four types of economic systems. Most economies are _____.
a)
Traditional
b)
Command
c)
Market
d)
Mixed
9.
Someone who buys or uses a good or service is called a _____.
a)
producer
b)
clerk
c)
consumer
10.
Someone who makes goods or provides a service is called a _______.
a)
producer
b)
clerk
c)
consumer
11.
In this type of economy, the individual decides who to sell their products to.
a)
Traditional
b)
Mixed
c)
Market
d)
Command
12.
If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy.
a)
Traditional
b)
Market
c)
Command
d)
Mixed
13.
A person who owns a business is called....
a)
an entrepreneur
b)
a representative
c)
an educator
14.
________ is the most basic economic problem.
a)
Scarcity
b)
Labor
c)
Greed
d)
Capital
15.
What is a market
a)
An area where you buy and sell
b)
A grocery location of products
c)
Where consumers purchase
d)
An government own store
16.
Command, Free enterprise, and Socialism are all ...
a)
Economics systems
b)
Governments
c)
Laws
d)
Science Theories
17.
What is a laissez faire capitalist approach to govt
a)
hand off (left alone)
b)
Extreme Control
c)
Trusting the govt
d)
A mix of control and hands off
18.
What is Free enterprise
a)
Individual control the resources and decides how to use them
b)
Gov control the resources and decides how to use them
c)
Military control the resources
d)
No one control the resources
19.
What is socialism/Marxist
a)
Gov control the resources and decides how to use them
b)
Individual control the resources and decides how to use them
c)
Military control the resources
d)
No one control the resources
20.
What is COMMAND ECONOMY
a)
Believes in a war between classes
b)
Allows for individuals to buy and sell
c)
Only the states have the resources
d)
Life and economic decisions revolve around the family
21.
A command economy is when the government is in control.
a)
True
b)
False
22.
Which of the following is an economic system in which the government and people are used to decide how to use scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
23.
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
24.
Capitalism flourishes here in this economic system.
a)
Traditional
b)
Market
c)
Command
d)
Mixed
25.
What is an economic system where only the government makes the economic decisions?
a)
traditional economy
b)
free enterprise
c)
mixed economy
d)
command economy
26.
What type of economy do most countries in the world have?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
27.
In the economy of the Bushmen of the Kalahari Desert the people follow the examples of their ancestors. This is what kind of economy?
a)
Traditional
b)
Market
c)
Command
d)
Centrally planned
28.
The Country of North Korea has a dictator that makes all of the economic decisions. What type of economy is this?
a)
Traditional
b)
Market
c)
Command
d)
Centrally Planned
29.
Society will never be able to satisfy all wants and ____.
a)
desires
b)
needs
c)
hungers
d)
money problems
30.
This type of government typically goes with the Command Economy.
a)
Democracy
b)
Dictatorship
c)
Autocracy
d)
Communism
31.
The government has little to no role in the production of goods in this type of economy.
a)
Traditional
b)
Mixed
c)
Command
d)
Market
32.
If there are only 100 televisions on sale and 200 people want to buy TV's, that is a problem of ____.
a)
desire
b)
demand
c)
supply
d)
scarcity
33.
Economics seeks the answer to the basic question of how to deal with ______.
a)
money
b)
hunger
c)
demand
d)
scarcity
34.
I am a farmer in Africa, and have always traded for my goods. I have a _____ economy.
a)
Traditional
b)
Command
c)
Market
d)
Mixed
35.
In this type of economy, the government places control on businesses, but the individual decides what to make.
a)
Mixed
b)
Market
c)
Command
d)
Traditional
36.
I have a problem with having enough resources. What basic question of economics solves this?
a)
What to produce?
b)
How to produce?
c)
When to produce?
d)
For whom to produce?
37.
_______ is another word for Market Economy.
a)
Capitalism
b)
Communism
38.
A tax imposed on imported goods and services.
a)
Quota
b)
Tariff
c)
Subsidy
d)
Standard
39.
money paid by government to keep price of a product/service low,helps a business continue run
a)
Quota
b)
Tariff
c)
Subsidy
d)
Standard
40.
Government controls everything!
a)
Democracy
b)
Communism
c)
Monarchy
41.
Classless Society
a)
Democracy
b)
Monarchy
c)
Communism
42.
No creativity, inefficient
a)
Democracy
b)
Monarchy
c)
Communism
43.
Worldwide culture with an interdependent economy
a)
Outsourcing
b)
Globalization
c)
Containerization
44.
Contract work abroad - in a different county.
a)
Outsourcing
b)
Globalization
c)
Containerization
45.
Creativity and Competition
a)
Market/Capitalism
b)
Command/Communism
c)
Socialism
46.
Taxing is equally divided among everyone
a)
Market/Capitalism
b)
Command/Communism
c)
Socialism
47.
Government owns means of production and all property
a)
Market/Capitalism
b)
Command/Communism
c)
Socialism
48.
No competition, lower quality goods
a)
Market/Capitalism
b)
Command/Communism
c)
Socialism
49.
Only 10 iPhones 7's can be produced in 1 day.
a)
Tariff
b)
Subsidy
c)
Quota
d)
Standard
50.
Competition keeps prices low and quality high
a)
Market/Capitalism
b)
Command/Communism
c)
Socialism
51.
wide variety of mixes between command and free market economy
a)
Market/Capitalism
b)
Communism/Command
c)
Socialism
52.
High taxes provide free health care and education and housing
a)
Market/Capitalism
b)
Command/Communism
c)
Socialism
53.
In a market economy, if your mom dad are both teachers, do you have to be a teacher?
a)
NO
b)
Yes
c)
Maybe
54.
In a command economy, who holds power over the economy?
a)
The people
b)
The government
c)
Beyonce
d)
The traditions of your ancesetors
55.
What are the 3 economic questions?
a)
What to produce? How To Produce? For whom to produce?
b)
Who to produce? Why you produce? Like to produce?
c)
Why to produce? Tell who to produce? Things to produce?
56.
If the government makes me produce 70 T-Shirts, what economic system is this?
a)
Mixed
b)
Traditional
c)
Command
d)
Market
57.
If I choose to produce fish for my town because my mom and dad were fishermen/women, what economic system is this?
a)
Mixed
b)
Market
c)
Traditional
d)
Command
58.
If I produce meat but, the government has to check to make sure I can put this product on the market, what economic system is this?
a)
Mixed
b)
Traditional
c)
Market
d)
Command
59.
Which economy is dictated by supply and demand and the buyers and sellers?
a)
Market
b)
Socilaism
c)
Mixed
d)
Command
60.
Which of the following is NOT one of the three basic questions of economics when looking at economic systems?
a)
What goods and services will be produced?
b)
What is the price of the goods?
c)
Who is responsible for producing goods and services?
d)
How will goods and services be distributed to customers?
61.
To trade.
a)
Taxes
b)
Barter
c)
Service
d)
Producer
62.
The sacrifice that is made when a person chooses between two goods or services.
a)
Profit
b)
Economics
c)
Productivity
d)
Opportunity Costs
63.
Scarcity is defined when a product is HARD to get. What happens to the price of the product when the item is scarce?
a)
Price Increases
b)
Price Decreases
64.
When there are a surplus of items, the product is easy to get. What happens to the price of these products?
a)
Price Increases
b)
Price Decreases
65.
Demand is how many people want the goods that are available. If _____ people want the goods available, there is _____.
a)
many, high demand
b)
aren't many, high demand
c)
aren't many, low demand
d)
many, low demand
66.
If there ____ people who want the goods available, there is a ______.
a)
aren't many, high demand
b)
many, low demand
c)
aren't many, low demand
67.
A free enterprise system is one in which-
a)
The government owns and operates all of the businesses and industries
b)
Private citizens own and operate most of the businesses and industries
68.
Import
a)
Selling things to another country for a profit.
b)
Purchasing items from another country
c)
Giving things to another country.
d)
Getting things from another country
69.
Export
a)
Selling things to another country for a porfit.
b)
Giving things to another country for free.
c)
Purchasing things from another country.
d)
Getting things from another country.
70.
When I choose one item over another because I cant afford both, this is called an ...
a)
scarcity
b)
opportunity cost
c)
choice
d)
incentive
71.
Considering all the questions above, it all comes down to ___________________. These are decisions we all must make due to scarcity.
a)
trade offs
b)
scarcity
c)
choice
d)
incentive
72.
Another simpler phrase for opportunity cost is ...
a)
trade off
b)
scarcity
c)
choice
d)
incentive
73.
Read the following two statements:
***People want more things than they have money to buy.
***The goods and services a society can produce at any one time are limited.
What problem results from these two conditions?
***People want more things than they have money to buy.
***The goods and services a society can produce at any one time are limited.
What problem results from these two conditions?
a)
Imbalance of Power
b)
Scarcity
c)
Excessive Wealth
d)
Opportunity Cost
74.
Which describes a society with a traditional economy?
a)
Is is based on doing things the way they were done in the past.
b)
It is located in a large urban area.
c)
It is organized in a large urban area.
d)
It is heavily dependent on industry.
75.
What is the central characteristic of a market economy.
a)
Government owns the means of production.
b)
All wage earners are paid identical amounts.
c)
The existence of labor unions is prohibited.
d)
Business owners are motivated by a desire for profit.
76.
What do the command economies of Cuba and North Korea have in common?
a)
They prohibit government ownership of property.
b)
Everyone enjoys maximum economic freedom.
c)
Government answers the fundamental economic questions.
d)
Private ownership of property is strongly encouraged.
77.
What effect does competition have on producers in a market economy?
a)
Producers share their resources equally.
b)
Producers look to the government to divide resources.
c)
Producers improve the quality of their goods to increase sales.
d)
Producers raise prices since they expect to sell fewer items.
78.
In a traditional economy, how is information about the way goods are made passed from one generation to the next?
a)
By the family.
b)
Through the legal system.
c)
By the public schools.
d)
Through government orders.
79.
What is the role of the government in a command economy?
a)
It has little to say in which goods are produced.
b)
It does not influence which services are offered.
c)
It guarantees that consumers will earn a high income.
d)
It makes the most important economic decisions.
80.
Three statements are shown:
1. The desire for profits drives people to risk their time and resources.
2. Producers determine the supply of a product.
3. Consumers determine the demand for a product.
Which type of economy do these features describe?
1. The desire for profits drives people to risk their time and resources.
2. Producers determine the supply of a product.
3. Consumers determine the demand for a product.
Which type of economy do these features describe?
a)
A traditional economy.
b)
A mixed economy.
c)
A market economy.
d)
A command economy.
81.
Two pictures are shown.
What do these two images have in common?
What do these two images have in common?
a)
They show farmers working in highly industrial economies.
b)
The farmers are working in traditional economies.
c)
These are government employees working on farms.
d)
The farmers are using modern agricultural methods.
82.
The Minister of Economics has created a plan for our national economy. It emphasizes the production of iron, steel, and hydroelectric power. In manufacturing, tanks and tractors will receive top priority. Consumer goods are regarded as less essential. Citizens are expected to sacrifice personal comfort for their country.
In what kind of economy does this Minister of Economics live in?
In what kind of economy does this Minister of Economics live in?
a)
This is an example of a COMMAND ECONOMY because the government is deciding what to produce, how to produce it, and who gets to have it.
b)
This is an example of a MARKET ECONOMY because the producers and consumers are deciding what to produce, how to produce it, and who gets to have it.
c)
This is an example of a TRADITIONAL ECONOMY because the family is deciding what to produce, how to produce it, and who gets to have it.
d)
This is an example of a MIXED ECONOMY because both the government and the people are deciding what to produce, how to produce it, and who gets to have it.
83.
What is the benefit of 2 hours of practice
a)
7 points
b)
12 points
c)
19 points
d)
25 points
84.
What is the benefit of decreasing the amount of chicken nugget orders from 48 to 29?
a)
19 Chicken Nuggets
b)
12 French Fries
c)
19 French Fries
d)
27 French Fries
85.
What is the opportunity cost of increasing production of chicken nuggets from 17 to 41 orders?
a)
11 French Fries
b)
11 Chicken Nuggets
c)
14 French Fries
d)
14 Chicken Nuggets
86.
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
87.
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
88.
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
89.
According to an economist, which of the following would be considered "scarce"?
a)
A teacher
b)
A worker at McDonalds
c)
An Astronaut
d)
A youth baseball coach
90.
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?
91.
For
an economist, the real cost of
something is:
a)
The
quantity of resources used to produce it
b)
Always
equal to the market value
c)
The
amount of money you paid for it
d)
What
you sacrifice in order to get it
92.
What is the fundamental problem of economics?
a)
How to keep consumers out of debt?
b)
How to fulfill our unlimited wants and needs with limited resources?
c)
How to figure out the way to make the most money?
d)
How do we ensure all people get a college education?
93.
In a free enterprise economy, resources are free so anyone can obtain them.
a)
True
b)
False
94.
The U.S. economy has many characteristics of a private enterprise economy.
a)
True
b)
False
95.
Consumers create demand for products when they select the ones they think will provide the greatest satisfaction for the price.
a)
False
b)
True
96.
Which needs are satisfied and how resources are distributed in a country depend on
a)
raw materials
b)
consumer education
c)
product prices
d)
the country's economic system
97.
A decision to use resources in a way that results in the greatest profit for the producer is known as
a)
free enterprise
b)
scarcity
c)
the profit motive
d)
value
98.
In a private enterprise economy, the success or failure of a business is determined primarily by
a)
consumer demand
b)
state and federal laws and regulations
c)
the decisions each business makes
d)
competitors' actions
99.
There are enough resources available in the world to meet everyone’s wants and needs.
a)
False
b)
True
100 %
