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Economics Unit Test Review

Total questions: 30

Worksheet time: 25mins

Name
Class
Date
1.

What is NOT one of the 3 basic economic questions?

a)

What good should be produced?

b)

Who will get the good or service?

c)

How should the good be produced?

d)

How much should the good cost?

2.

There is only one gas station on a highway. If two more gas stations open next to the first, what will happen to the price?

a)

Price will decrease

b)

Price will increase

c)

Price will stay the same

3.

If country X has a large land mass, fertile soil and many farms, what should they specialize in?

a)

Cars

b)

Computers

c)

Agricultural goods

d)

Textiles

4.

Rubber is used to make trees, If a pest kills the rubber trees. What action must the tire producer make in order to deal with the decrease in supply of rubber?

a)

Decrease the price of tires

b)

Increase the price of tires

c)

stop production of tires

d)

increase production of tires

5.

What is it called when many people buy a certain good or service?

a)

Supply

b)

Demand

c)

Production

d)

Market Clearing Price

6.

What is the total amount of a product available for purchase called?

a)

Supply

b)

Demand

c)

Production

d)

Market Clearing Price

7.

What is the main reason that different countries trade with each other?

a)

Different countries specialize in producing different kinds of goods

b)

Different counties have different number of people living in them

c)

Countries share the same banking system

8.

Megan wants to open a new bakery. What would help Megan answer the questions of WHAT to produce?

a)

A magazine listing the price of bakery ovens

b)

A survey showing which baked goods are most popular

c)

An advertisement showing spaces available for rent

9.

Megan wants to open a bakery. What will help her answer the questions of HOW to produce?

a)

A bake sale that the school is hosting.

b)

A survey showing which baked goods are most popular.

c)

An advertisement showing space available to rent.

10.

Which is NOT a factor of production?

a)

Market

b)

Labor

c)

Land

d)

Entrepreneurship

11.

What is a tax on an imported good called?

a)

Tariff

b)

Embargo

c)

Specialization

d)

import Quota

12.

In a ________ economy, individuals follows customs and habits when deciding what/how to produce.

a)

Traditional

b)

Command

c)

Market

d)

Economic

13.

In a ______ economy, the government makes all the key decisions.

a)

Traditional

b)

Command

c)

Market

d)

Mixed

14.

Why are most countries better off specializing in the production of a particular goods, and then trading with other nations.

a)

Transportation costs are lower than they were a century ago.

b)

Resources are not evenly distributed among countries.

c)

Greater investments in capital goods increase productivity.

d)

People have limited resources to satisfy unlimited wants.

15.

What is an example of a service?

a)

X Box

b)

Food

c)

Dentist

d)

Car

16.

What is a natural resource?

a)

Timber

b)

Cars

c)

Desk

d)

Farmer

17.

What type of economy does the USA have?

a)

Command

b)

Mixed

c)

Traditional

d)

Market

18.

Which country in the chart has the most available to export?

a)

United States

b)

Venezuela

c)

Romania

d)

Japan

19.

What category does the picture belong in?

a)

Land

b)

Labor

c)

Capital

20.

What category does this picture belong in?

a)

Land

b)

Labor

c)

Capital

21.

Based on the chart, which countries should trade in agricultural products and fuel and mining products?

a)

Mexico and Australia

b)

US and Australia

c)

US and Saudi Arabia

d)

Saudi Arabia and Mexico

22.

What category does this picture belong in?

a)

Land

b)

Labor

c)

Capital

23.

Which has the largest population?

a)

East China

b)

Northeast China

c)

North China

d)

Northwest China

24.

Which has the largest number of oil deposits in China?

a)

East China

b)

Northwest China

c)

North China

d)

Southwest China

25.

Which region has the largest number of coal mines?

a)

East China

b)

Northeast China

c)

North China

d)

Northwest China

26.

What factor of production does oil fall into?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneur

27.

Describe the meaning of Scarcity.

a)

Many

b)

Whole

c)

Abundance

d)

Limited

28.

When a country can do the job better/faster/cheaper than others, they tend to _____________ in that product.

a)

Market

b)

Specialize

c)

Locate

d)

Demand

29.

If supply of strawberries goes down, what happens to the price of strawberry pie?

a)

Increase

b)

Decrease

c)

Stays the same

30.

If demand decreases for an item, what happens to the price?

a)

Increase

b)

Decrease

c)

Stays the same