WorksheetsTest 2 Economic Systems and Performance
Total questions: 40
Worksheet time: 34mins
The United States has a modified private enterprise economy, or mixed economy.
True
False
The purpose of government in a command economy is to...
ensure the availability of consumer products
encourage entrepreneurs
make major economic decisions
promote economic freedom
An example of a country that is based on the market economy is...
the Inuit
the former Soviet Union
the United States of America
North Korea
The United States can best be described as having a...
modified private enterprise system (mixed)
traditional system
command economy
pure free enterprise system
All of the following are characteristics of a command economy EXCEPT...
it can change direction drastically in a brief period of time.
public services are available at little or no cost.
it gives the consumer what they want.
it provides workers with few incentives to work hard.
A market economy...
does not give the basic needs to the people for free.
limits the choices of goods and services available.
permits extensive government intervention.
offers a high degree of certainty for its workers.
“So long as mankind lived by raising crops and herding animals, there was not much need for measuring small units of time. The seasons were all important—to know when to expect the rain, the snow, the sun, the cold. Why bother with hours and minutes? Daylight was the only important time, the only time when men could work.”
From Daniel J. Boorstin’s The Discoverers: A History of Man’s Search to Know His World and Himself, 1985
traditional economy
command economy
market economy
mixed economy
The study of economics is important because it enables us to...
describe our standard of living.
increase our consumption of consumer goods.
become better decision makers.
determine what goods ought to be produced.
The dollar value of all final goods and services and the most comprehensive measure of a country's total production output is...
its standard of living.
financial capital.
a cost-benefit analysis.
Gross Domestic Product (GDP).
An economy at its production possibilities frontier is operating...
with slow economic growth.
at full/maximum potential.
without division of labor.
as a free enterprise economy.
Which of the following choices best describes what this production possibilities frontier is depicting?
alternative possibilities
opportunity cost
cost of idle resources
economic growth
What factor of production does this image illustrate?
land
labor
capital
entrepreneurship
There are four types of economic systems. Most economies are _____.
Traditional
Command
Market
Mixed
What is one advantage of a Command Economy?
Individual freedom for everyone
Health and public services are available to everyone at little or no cost.
The government rarely interferes.
Able to adjust to change gradually
The main strength of a command economy is that it can change direction drastically in a relatively short time:
False
True
A command economy gives people the motivation to work hard:
True
False
An economic system in which individuals and businesses make decisions about what to produce.
Market economy
Mixed economy
Communism
Command economy
What economic goal is closest to the example?
Help to protect people from unexpected events
stability
growth
equity
security
What economic goal is closest to the example?
Rescues extreme ups and downs in our economy and helps to keep prices from changing too quickly
security
growth
full employment
stability
What economic goal is closest to the example?
When an economy focuses on having jobs for all individuals willing and able to work this is known as:
Sustainability
Full Employment
Efficiency
Security
What economic goal is closest to the example?
Allows each member of society to make choices about how to use their resources
Security
efficiency
Freedom
Satbiility
What economic goal is closest to the example?
Promotes a just and fair system
freedom
equity
security
growth
What economic goal is closest to the example?
Promotes wise decision making when using resources
stability
freedom
freedom
efficiency
security
I’ve been at my job now for 10 years. I work really hard, and always do what I am told. They just hired a new guy and his desk is right next to mine. He is late all the time, he is sloppy at putting together the packets we make, and he makes the same about of money as me. It makes me so mad.
efficiency
equity
growth
security
In 2015, under President Barack Obama, the United Stated unemployment rate dropped to 5%. This was a signal that our economy was working at...
full-employment
inflation
efficiency
equity
GDP indicates the economy grew by 3.5%
Economic Freedom
Economic Stability
Economic Growth
Economic Productivity
I am a farmer in Africa, and have always traded for my goods. I have a _____ economy.
Traditional
Command
Market
Mixed
Businesses have freedom to produce whatever they think consumers will buy
Market
Command
Mixed
Traditional
The extent to which a person feels safe about providing for the basic needs and wants of themselves and/or their dependents.
Efficiency
Equity
Freedom
Security
Inflation means
the economy is rising.
the price of a good has increased.
the general level of prices has increased.
the economy is performing well.
The extent to which consumers and producers have unrestricted choice in the goods and services they buy, sell and produce.
Equity
Development
Security
Freedom
An economic goal where a system makes the most of scarce resources using resources wisely and productively
Economic Freedom
Economic Equity
Economic Efficiency
Economic Growth
