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WorksheetsChapter 1: Economic Decisions and Systems
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
Which of the following scenarios will probably cause prices to drop?
a)
A new snack food is very popular, and only one company produces it.
b)
A new snack food is very popular, and only one company produces it.
c)
Many companies begin producing a product in relatively high demand.
d)
Half of the world's diamond mines shut down production. 4
2.
Generally, as the price of a product increases,
a)
consumers will be willing to purchase larger quantities of the product.
b)
businesses will be willing to supply larger quantities of the product.
c)
the supply curve will slope downward.
d)
demand will increase.
3.
The rivalry among businesses to sell their goods and services is known as
a)
entrepreneurship.
b)
competition.
c)
capitalism.
d)
the right of private property.
4.
In the U.S., you can own anything you want and decide what you want to do with it, as long as it does not violate the law. This describes the principle of
a)
scarcity.
b)
competition.
c)
the command economy.
d)
the right of private property.
5.
Which of the following is NOT an especially important principle of the U.S. economic system?
a)
freedom of choice
b)
private property
c)
tradition
d)
profit
6.
Another name for the economic system in the United States is
a)
private enterprise
b)
capitalism
c)
free enterprise
d)
all of the choices given
7.
Who owns the economic resources in a market economy?
a)
the people of the country
b)
the tribal elders
c)
the government
d)
business people and entrepreneurs but not consumers
8.
Which type of economy is usually centered mainly on meeting people's basic needs?
a)
market economy
b)
command economy
c)
traditional economy
d)
mixed economy
9.
The government of Erewhon owns and controls all economic resources and decides how those resources will be used. The government even assigns people specific jobs and careers. Erewhon uses which type of economic system?
a)
market economy
b)
command economy
c)
traditional economy
d)
laissez-faire economy
10.
All nations must decide
a)
what combination of resources will best suit its circumstances.
b)
which wants and needs are most critical.
c)
which goods and services to produce.
d)
all of the given choices.
11.
In every nation on Earth,
a)
economic resources are owned and controlled by the government.
b)
workers have the ability to produce the same goods and services.
c)
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12.
What is the final step of the decision-making process?
a)
make a decision
b)
review your decision
c)
evaluate the choices
d)
define the problem
13.
What is the first step in the decision-making process?
a)
identify the choices
b)
define the problem
c)
evaluate the choices
14.
Oprah had $25 to spend. She decided to buy a new shirt instead of going to the amusement park with his friends. Oprah has
a)
purchased a service.
b)
made an economic tradeoff.
c)
made a poor economic decision.
d)
ignored the concept of scarcity.
15.
If everybody had an unlimited supply of economic resources, which of the following would NOT exist?
a)
wants
b)
capitalism
c)
scarcity
d)
needs
16.
People producing goods and services are called
a)
human resources.
b)
natural resources.
c)
limited resources.
d)
capital resources.
17.
The largest producer of goods and services in the world is
a)
Japan.
b)
Russia.
c)
the United States.
d)
China.
18.
Goods
a)
are things you purchase only after your basic needs are met.
b)
have no physical characteristics.
c)
must be provided to you at the time you want to consume them.
d)
are things you can see and touch.
19.
Which of the following is an economic need?
a)
a new television
b)
water
c)
concert tickets
d)
a loaded SUV
20.
Generally, a lack of competition will result in lower prices for goods and services.
a)
True
b)
False
21.
Communism refers to the private ownership of resources by individuals, rather than by the government.
a)
True
b)
False
22.
Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs.
a)
True
b)
False
23.
The final step in the decision-making process is to select the best choice from among the alternatives.
a)
True
b)
False
24.
The basic economic problem results from not having enough resources to satisfy every need.
a)
True
b)
False
25.
All economic resources have a limited supply.
a)
True
b)
False
26.
Buildings, equipment, and supplies are examples of natural resources.
a)
True
b)
False
27.
Goods and services are purchased by businesses as well as by individuals.
a)
True
b)
False
28.
Things that are required in order to live are known as wants.
a)
True
b)
False
29.
Economic resources are sometimes referred to as
a)
factors of production
b)
ventures
c)
oligopolies
d)
Market structures
30.
Which of the following is probably a competitor to Mary's CD Shop?
a)
Food Clown Grocery Store
b)
B Flat Records and Tapes
c)
Al's Garage
d)
Donna's Donut Hut
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