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Worksheets

World Economies

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A nation where economic decisions are made by the central government represents what type of economy?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

2.

What type of economy does the US have today?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

3.

What type of economy did the US have in the 19th century?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

4.

Who is responsible for making economic decisions in a market economy?

a)

the central government

b)

big business

c)

individuals

d)

the central government and individuals

5.

Which of the following companies did NOT go bankrupt during the 2008 recession?

a)

Countrywide Financial

b)

Bank of America

c)

Lehman Brothers

d)

AIG

6.

Which of the following was NOT a cause of the 2008 recession?

a)

subprime mortgages

b)

gambling on derivatives

c)

Iceland's bank failure

d)

the US govt's failure to regulate the banking industry

7.

What is the difference between a traditional economy and a market economy

a)

Market Economy-based on custom

b)

Trad. Economy-based on supply & demand

c)

Market Economy-based on govt needs

d)

Trad. Economy-based on habit & custom

8.

What economy is also known as Communism?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

9.

What economy is most associated with Adam Smith?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

10.

What economist believes that deficit spending would help the economy by stimulating it during times of debt?

a)

John Maynard Keynes

b)

Adam Smith

c)

John Locke

d)

Karl Marx

11.

Why would the US place tariffs on goods?

a)

to create a large percentage of federal revenue

b)

to make it easier to import goods

c)

to protect American jobs and industries

d)

to close the borders to all foreign trade

12.

When a country exports $2.5B worth of goods and imports $4.2B worth of goods, it is said to have what?

a)

Favorable Balance of Trade

b)

Budget Surplus

c)

Unfavorable Balance of Trade

d)

Budget Deficit

13.

What policy would a government use to prohibit trade with another country?

a)

Tariff

b)

Export Quota

c)

Imort Quota

d)

Embargo

14.

What does NAFTA do?

a)

reduce trade barriers between all countries

b)

reduce trade barriers between the US, Mexico and Canada only

c)

increase government revenue from tariffs

d)

reduce competition between European countries

15.

What is democratic-socialism?

a)

Another word for a traditional economy

b)

Another word for a command economy

c)

Another word for a market economy

d)

Another word for a mixed economy

16.

Why is the US not a purely capitalistic country?

a)

the government regulates wages

b)

the government regulates treatment of workers

c)

the government issues a retirement pension to workers called Social Security

d)

all of the above

17.

What is the USMCA?

a)

Pres. Trump's replacement of NAFTA

b)

a trade agreement

c)

a document between the US, Mexico and Canada

d)

All of the above

18.

According to Karl Mark, what does capitalism do?

a)

builds a strong economy

b)

grants tax breaks for the wealthy

c)

lead to fights between the poor and the wealthy

d)

all of the above

19.

What market was particularly hit the hardest in the 2008 recession, being called the “biggest financial bubble in history”?

a)

banking

b)

housing

c)

manufacturing

d)

mining

20.

What is an example of Adam Smith's idea of invisible hand?

a)

Collecting a paycheck when a new company opens up

b)

Allowing 5 year-old children to work in coal mines full time

c)

Being able to serve fish that has gone bad to a restaurant full of customers

d)

Charging for extra sauce packets when purchasing MCDonald's Chicken McNuggets