WorksheetsEconomic and Political Systems Pre Test 2017
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
In a traditional economy, how are economic decisions made?
a)
Custom and habit
b)
Government leaders and planners
c)
Consumers and the market
d)
Combination of consumers and government leaders/planners
2.
Which would be a problem for a community with a traditional economy?
a)
People in the village find ways to make their products more efficiently.
b)
The price of advanced electronics, like computers, begins to rise rapidly.
c)
People in the country begin to want and need products that cannot be made or traded locally.
d)
Older villagers take on younger workers to learn to make the products they have been producing.
3.
In a command economy, how are economic decisions made?
a)
Custom and habit
b)
Government leaders and planners
c)
Consumers and the market
d)
Combination of consumers and government leaders/planners
4.
Which would be a problem in a command economy?
a)
People would get rich.
b)
Local crafts would be produced before manufactured goods.
c)
A worker trying to start a new business on his or her own would need permission.
d)
Individual business people would risk their own money to produce goods.
5.
In a market economy, how are economic decisions made?
a)
Custom and habit
b)
Government leaders and planners
c)
Individuals and individual business people would risk their own money to produce goods.
d)
Combination of consumers and government leaders/planners
6.
Who takes on the financial risk in starting a new business in a market economy?
a)
Consumers
b)
Individual business people
c)
Government planners
d)
Combination of consumers and government leaders/planners
7.
Why do most economies in the world today operate somewhere in between a market economy and a command economy?
a)
Government control always makes a market economy profitable.
b)
Most consumers prefer government control to a free market economy.
c)
Government control of some aspects of the economy has never been successful in the modern world.
d)
Most economies have found they need a mix of free market and some government control to be successful and protect consumers.
8.
What is voluntary trade?
a)
An open exchange between a buyer and seller where only one person benefits.
b)
A forced exchange between a buyer and seller where neither person benefits.
c)
An open exchange between a buyer and seller where both people benefit.
d)
A forced exchange between a buyer and seller where both people benefit.
9.
What is specialization?
a)
When a country focuses on producing those goods and services it can provide most efficiently.
b)
When a country tries to produce all goods and services its people want.
c)
When a country focuses on producing only goods.
d)
When a country focuses on producing only services.
10.
What is a tariff?
a)
A tax paid by the purchaser when goods are sold.
b)
A tax placed on goods coming into one country from another country.
c)
A tax placed on goods made by local craftsmen or manufacturers.
d)
A fee paid when goods are shipped from one state to another in the United States.
11.
What is a quota?
a)
A tax placed on imported goods when they enter a country.
b)
A decision to prevent certain goods from being imported at all.
c)
A limit on the amount of foreign goods allowed into a country.
d)
A tax placed on goods when they are purchased.
12.
What is an embargo?
a)
A tax placed on goods coming into the country from overseas.
b)
A limit on the amount of goods allowed into the country.
c)
A tax paid by the producer before he can sell his goods in another country.
d)
A halt to trade with a particular country for economic or political reasons.
13.
How could a high tariff on imported corn help the people in the country charging the tariff?
a)
The corn prices would be lower if tariffs were in place.
b)
Local corn would always be of a higher quality than corn from other countries.
c)
Local farmers would be able to sell their corn since it would be cheaper than imported corn.
d)
Local corn would be more plentiful because it was grown closer to the markets.
14.
Why is a system of currency exchange necessary for international trade?
a)
There must be a way to pay for goods purchased from countries with different types of currencies.
b)
Nearly all world currencies are worthless on the world market.
c)
Most goods bought on the international market must be paid for in US dollars.
d)
Those selling goods on the world market want to be paid in gold and silver.
15.
What does a country’s literacy rate measure?
a)
How many students attend school.
b)
How many people over the age of 15 can read and write.
c)
How much money, on average, a person makes in one year.
d)
How many babies die before they are one-year old.
16.
If a country has a high literacy rate, what can you conclude about the country’s standard of living?
a)
Most likely, the country’s standard of living is high.
b)
The standard of living is average.
c)
The standard of living is low.
d)
You cannot make a standard of living conclusion based on a country’s literacy rate.
17.
What does a country’s total GDP measure?
a)
How many students attend school.
b)
How many people over the age of 14 can read and write.
c)
How much money, on average, a person in a country makes in one year.
d)
The total value of all goods and services produced in the country in one year.
18.
If a country has a high per capita GDP, what can you conclude about the country’s standard of living?
a)
The country’s standard of living is high.
b)
The standard of living is average.
c)
The standard of living is low.
d)
You cannot make a standard of living conclusion based on a country’s per capita GDP.
19.
Which is part of a country’s human capital?
a)
Skills and knowledge workers have.
b)
Taxes collected from a country’s workers.
c)
Money paid to workers for producing goods.
d)
The amount of goods sold in foreign trade in one year.
20.
What are capital goods?
a)
The workers who make goods and services.
b)
The factories, machines, and technology used to make goods.
c)
Money spent to train workers to use new technology.
d)
Money available for scholarships to graduate school.
21.
Which BEST describes an entrepreneur?
a)
A business person
b)
A business person who tries not to take risks with money.
c)
Someone who is always successful in whatever he attempts.
d)
Someone who is willing to take a risk to begin a new business.
22.
In an autocracy, who makes most of the important governmental decisions?
a)
The courts
b)
The people
c)
An individual ruler
d)
An elected legislature
23.
Why do the individual voters have more power in a democracy than they do in an autocracy or an oligarchy?
a)
Kings are always cruel rulers.
b)
The people play a role in deciding who rules.
c)
All of the power stays in the hands of the local governments.
d)
Voters in democratic countries always choose qualified leaders.
24.
The leader of a parliamentary system of government is called the _____.
a)
King
b)
Dictator
c)
Prime Minister
d)
Governor
25.
Which best describes the two main forms of a democratic government?
a)
Dictatorship and republican
b)
Presidential and dictatorship
c)
Presidential and confederate
d)
Parliamentary and presidential
26.
Who chooses the country’s leader in a presidential form of government?
a)
The king
b)
The people
c)
The country’s legislative body
d)
The leaders of local governments
27.
Who chooses the country’s leader in a parliamentary form of government?
a)
The king
b)
The people
c)
The country’s legislative body
d)
The leaders of local governments
28.
In which of the following political systems do individual citizens have the fewest freedoms and rights?
a)
Unitary
b)
Democracy
c)
Federal
d)
Autocracy
29.
True or False: In a parliamentary form of government, the head of government may be removed from office through a vote of “no confidence.”
a)
True
b)
False
30.
North Korea is led by a dictator name Kim Jung Un. This is an example of a ____________ form of government.
a)
Parliamentary
b)
Democracy
c)
Autocracy
d)
Oligarchy
100 %
