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WorksheetsEconomic System
Total questions: 20
Worksheet time: 40mins
Name
Class
Date
1.
What type of economic system does the United States have?
a)
Market Economy
b)
Traditional Economy
c)
Command Economy
2.
All Americans enjoy the following economic freedoms EXCEPT the freedom to:
a)
buy and sell various goods
b)
fix prices
c)
own property
d)
earn profit
3.
In a command economy, most of the capital, tools, and production equipment are
a)
outdated
b)
privately owned
c)
owned by government
d)
unregulated
4.
The law of supply states that:
a)
businesses will provide more products when they can sell them at higher prices
b)
businesses will provide fewer products when they can sell them at higher prices
c)
consumers will purchase fewer products when they must buy them at higher prices
d)
consumers will purchase fewer products when they can buy them at lower prices
5.
The law of demand states that:
a)
businesses will provide more products when they can sell them at higher prices
b)
businesses will provide fewer products when they can sell them at higher prices
c)
consumers will purchase fewer products when they must buy them at higher prices
d)
consumers will purchase fewer products when they can buy them at lower prices
6.
The free-enterprise system means that Americans
a)
are able to run their businesses in the way they think is best
b)
are entitled to receive free products from stores
c)
do not have to pay taxes during their first year in business
d)
depend on the government to tell them how to operate.
7.
Last Christmas a popular toy was sold out all over town. When a local toy store received a shipment, it advertised the toy at twice its normal price. The store doubled the price due to
a)
scarcity
b)
competition
c)
increased productivity
d)
monopoly
8.
A small, family-owned bakery is an example of a
a)
sole proprietorship
b)
partnership
c)
corporation
d)
non-profit organization
9.
What is a disadvantage unique to a partnership?
a)
All profits of the business belong to the owners
b)
Personal property can be lost if the business fails
c)
More than one person provides capital
d)
Daily operations can suffer due to disagreements.
10.
Who pays a business’s debts in a failed sole proprietorship?
a)
the owner of the business
b)
the employees of the business
c)
the stockholders
d)
the government
11.
Corporations are owned by
a)
partners
b)
stockholders
c)
managers
d)
government
12.
The duty of a corporation’s board of directors is to
a)
keep the corporation from paying dividends
b)
pay off debts if the corporation fails.
c)
represent stockholders in making decisions for the corporation
d)
oversee the day-to-day operations of the corporation
13.
A corporation's board of directors does all of the following EXCEPTA. set the corporation's policies.B. decide what dividends to pay.C. appoint corporate officers.
a)
set the corporation's policies
b)
decide what dividends to pay
c)
appoint corporate officers
d)
manage daily business operations
14.
Nonprofit organizations* A. are not taxed by the government.B. are always organized like corporations.C. are sole proprietorships.Print Preview https://webcms.rpclearning.com/ttPrintPreview.aspx?testid=178315 of 7 10/12/2017 12:45 PMD. are examples of trusts.
a)
are not taxed by the government
b)
are always organized like corporations
c)
are sole proprietorships
d)
are examples of trusts.
15.
Which of the following is not one of the four factors of production?
a)
entrepreneurship
b)
labor
c)
capital
d)
wealth
16.
Lack of a particular resource.
a)
scarcity
b)
free enterprise
c)
law of supply
d)
law of demand
17.
Process of people buying goods and services to fulfill their wants and needs.
a)
Scarcity
b)
Command economy
c)
want-satisfaction chain
d)
partnership
18.
stockholders
a)
people who buy corporate stocks
b)
people buying goods and services
c)
lack of particular resource
d)
people who grow their own food
19.
Is a type of business in which two or more people share the costs, profits and responsibilities.
a)
partnership
b)
sole proprietorship
c)
corporation
d)
non-profit organization
20.
What are the types of U.S. businesses?
a)
market economy, traditional economy, market economy
b)
sole proprietorship, partnership, corporation
c)
natural resources, capital, labor, entrepreneurship
d)
none of the above
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