NEW
Font size
S
M
L
XL
WorksheetsChapter 17 Test Review
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
In a system of voluntary exchange, people:
a)
Freely trade for the goods and services they need or want.
b)
Independently supply goods and services for their own needs.
c)
Send requests to the government for needed goods and services.
d)
Agree to pay for all goods and services provided by the government.
2.
People make voluntary exchanges of goods and services in a free market MAINLY because they:
a)
Anticipate a time when exchanges will be more costly.
b)
Follow laws of economics that require frequent exchanges.
c)
Expect to be better off as a result of an exchange.
d)
View exchanges as a good way to compete with other parties.
3.
Which of the following BEST describes the economic system practiced throughout most of the history of the United States?
a)
Capitalism
b)
Socialism
c)
Communism
d)
Fascism
4.
The United States’ GDP is the third largest in the world.
a)
True
b)
False
5.
Transferring ownership of a good or service does NOT create new production; therefore, the sale is not included into GDP.
a)
True
b)
False
6.
Which of the following is NOT a major factor of production?
a)
Capital
b)
Labor
c)
Markets
d)
Entrepreneurs
7.
GDP only reflects the __________ price/market value of a country:
a)
Beginning
b)
Final
c)
Intermediate
d)
Recurring
8.
Which of the following items would be included in the MONEY flow of the Circular Flow Model?
a)
Costs, Revenues, Income, Spending
b)
Resources, Goods, Services, Factors of Production
c)
Markets, Sectors
d)
Businesses, Individuals
9.
Which of the following tend to be the Government’s primary sources of income?
a)
Public school tuition
b)
Taxes and Borrowing money
c)
Fundraisers and Donations
d)
Trade and Exchange
10.
Which of the following is NOT a unique feature of Capitalism?
a)
Competition
b)
Voluntary exchanges
c)
Government involvement
d)
Economic freedom
11.
The Profit Motive is best explained using the concepts of:
a)
Supply and Demand being dictated by producers and consumers with limited government involvement.
b)
Freely and willingly choosing to participate in market activities, and analyzing transactions.
c)
Risk vs Reward, Investing, Desiring to earn money.
d)
Struggling to attract customers, Increasing efficiency and production to accommodate consumer interests.
12.
The only two sectors represented on the Circular Flow Model are the Government and Foreign sectors.
a)
True
b)
False
13.
In the economic system of Communism, individuals and businesses have relative freedom to decide how to use the factors of production in order to make money with little government interference.
a)
True
b)
False
14.
Adam Smith is considered the father of Capitalism.
a)
True
b)
False
15.
Adam Smith’s famous book, _______________, is widely recognized for providing the blueprint and framework for Capitalism.
a)
The Wealth of Nations
b)
Two Treatises of Government
c)
Declaration of Economic Freedom
d)
Capitalistic Manifesto
16.
Which of the following was NOT directly influenced by Adam Smith’s economic ideology?
a)
Alexander Hamilton
b)
Thomas Jefferson
c)
James Madison
d)
John Adams
17.
The United States accounts for ________ of the world’s goods and services.
a)
1/2
b)
1/3
c)
1/5
d)
1/10
18.
Which of the following would provide a quality example of utilizing division of labor?
a)
Teachers at a school
b)
Nurses at a doctor's office
c)
Workers at a factory
d)
Cashiers at a grocery store
19.
What is the US' GDP?
a)
$20 Trillion
b)
$18.57 Trillion
c)
$19.65 Trillion
d)
$15.98 Trillion
20.
When analyzing the Circular Flow Model of resources, goods, services and money distribution, money tends to flow:
a)
Outside of reality.
b)
Clockwise.
c)
Inside of resources.
d)
Counter-clockwise.
Reset
