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WorksheetsEcon Unit 2 Review
Total questions: 43
Worksheet time: 47mins
Which option accurately identifies two characteristics of a command economy?
centrally-planned, driven by profit motive
central ownership of property, lack of consumer choice
competition between sellers, central ownership of resources
centrally-planned,high degree of consumer sovereignty
Which of the following is most commonly a role of the government in the United States economy?
setting prices for goods
requiring factories to produce certain goods
determining where citizens may work
creating laws to ensure the safety of consumers
The Inuit in northern Alaska and Canada are examples of this type of economy
traditional
command
mixed
market
The former USSR, North Korea, and Cuba are close examples of
traditional economies
market economies
command economies
mixed economies
What are the three basic questions all economies must answer?
What to produce, how to produce, for whom to produce
Why to produce, where to produce and for whom
What to produce, how to produce, where to produce
There are four types of economic systems. All economies are _____.
Traditional
Command
Market
Mixed
When buyers have power over the market and what is produced, it is called
market economies
competition
consumer sovereignty
profit motive
Which of the following is consistent with the goal of economic SECURITY?
The economy produces enough goods and services to satisfy everyone's wants.
Providing for the less fortunate in society with the support they need in terms of food, shelter, & health care.
Allocation of resources in such a way that the greatest number of consumers get what they want with the least amount of waste.
Ensuring people have more equal income.
Schools and national defense are provided by _______________________ and are considered _______________________ goods and services.
Individuals, Private
Government, Private
Individuals, Public
Government, Public
This is essential to a successful economy because it gives people the incentive to work and be productive:
legal equality
equal opportunity
private property rights
profit incentive
The rivalry between sellers to get more customers by lowering costs & providing better goods/services
voluntary exchange
competition
incentives
legal equality
Which of the following is an example of a market failure?
The lack of basic needs for everyone in an economy.
When people are hurt or helped by an economic activity they are not part of.
The government ownership of some factors of production.
When people are only hurt by an economic activity they are not part of.
Goal focusing on keeping inflation rates low and preventing deflation
security
growth
full employment
price stability
When an economy focuses on an unemployment rate below 4.5%, the goal is
Sustainability
Full Employment
Efficiency
Security
this goal promotes a just and fair system of opportunity
freedom
equity
security
growth
Promotes wise decision making when deciding how resources will be used
price stability
economic freedom
economic efficiency
economic growth
An economy's ability to maintain economic growth over time is known as:
Sustainability
Full Employment
price stability
Economic security
Public goods are provided by the government because
the market won't provide certain goods or services due to lack of profit motive
it is required to by law
it is profitable for the government
certain safety nets are necessary
Consumer choice, competition and private property rights are all examples of
advantages of market economies
disadvantages of market economies
advantages of command economies
disadvantages of command economies
Allocation strategy by random selection
lottery
command
competition
personal characteristics
This is the most efficient allocation method
majority rule
price
authority
lottery
Which one is NOT a role of the government in the U.S. economy?
protect property rights
correct market failures
promote competition among buyers
provide public goods
Lotteries, prices, competition, authority, and force are all examples of ways to
invest in education and technology
improve productivity
allocate scarce resources
collect taxes
Because command economies have a high degree of government interaction, they are better suited to meet which economic goals?
growth and efficiency
stability and equity
freedom and growth
efficiency and freedom
The allocation strategy that is used when a teacher awards a homework pass to the student with the highest grade on this quiz in each class would be
Personal characteristic
Contest
First Come, First Served
Authority
When resources are allocated by age, ancestry, or gender, this allocation strategy is being used:
Authority
Lottery
First Come, First Served
Personal Characteristic
what is the definition of productivity?
the amount of output per unit of input.
how much output each laborer produces
when a person is involved in something productive
When all resources are being used efficiently
What increases productivity?
specialization
investment in capital resources
investment in human capital
all of the above
Basic needs are not met for all; some may be very rich and others very poor; certain things not provided are all
advantages to command economies
disadvantages of market economies
disadvantages of traditional economies
advantages of mixed economies
What is a possible effect of government regulation?
higher prices
lower prices
more competition
monopolies
Another term for a market economy is a ___________________ economy
capitalist
mixed market
command
centrally-planned
