WorksheetsUnit 3 - Fundamentals of a Market-Based Economy
Total questions: 35
Worksheet time: 1hrs 14mins
Adam Smith believed that the government should be involved in all of the following areas EXCEPT:
military
property
business
nothing at all
In this system all economic questions are answered by the government.
Command Economy
Mixed Economy
Market Economy
Traditional Economy
In this system all economic questions are answered by the people.
Command Economy
Mixed Economy
Market Economy
Traditional Economy
In this system all economic questions are answered by the people and the government.
Command Economy
Mixed Economy
Market Economy
Traditional Economy
In this system all economic questions are answered by the past or customs.
Command Economy
Mixed Economy
Market Economy
Traditional Economy
The 3 economic questions are...
Who, what, when, where, and why?
Where to go, when to go there, and how long should we stay?
Where are we from, why are we here, what's our purpose?
What to make, how to make it, & who gets it?
These 2 countries have command economies.
USA and Cuba
USA and Australia
Cuba and South Korean
Cuba and North Korea
Most democratic countries have this type of economic system.
mixed economy
traditional economy
command economy
market economy
This group of people in the USA still lean heavily towards using a traditional economy.
Amish
Mennonites
Most Modern Native American Tribes
Hasidic Jews
Which of the following is NOT a characteristic of a market economy?
Limited or low government involvement in the economy
Few incentives, little innovation, and limited competition
Consumer Sovereignty
Profits being the #1 motivator for people and businesses
Adam Smith believed the government's job was to...
enforce contracts, give copyrights, and provide roads/sewers
answer all 3 economic questions
stop international trade
guarantee everyone a job with equal pay
Which of these best describes the invisible hand...
the government should look out for all citizens while allowing citizens to do whatever they want
if people do nothing the economy will grow
lots of government control, people must work together looking out for the community
no government control, when people act selfish it helps everyone
What conclusion can be drawn from this situation?
What product should Ghana specialize in making?
1. Nation A produces cars more efficiently than it can grow food crops.
2. Nation A produces cars and buys food from Nation B.
What principle of economics is illustrated by these two statements?
Based on this information, what steps might Ghana's government consider?
Which statement can be inferred from the information in the chart?
How does this situation encourage trade among countries?
Competitive advantage is what distinguishes a business from the competition in the market.
True
False
If a business has a competitive advantage they will: (2 answers)
be more profitable than their competitors
the business will probably last longer than their competitors
sell less products than their competitors
Manufacturing shoes to the highest possible standard can create a:
Competitive advantage
comparative advantage
The government providing direct benefits to producers or using regulations to restrict competition in order to protect existing producers is called
competitive market
purchasing power
crony capitalism
subsidies
Competition means we are all born equal in terms of rights, freedoms, and the opportunity to make the best of our talents & abilities.
True
False
What is meant by the fact that profit is the incentive to work or start/operate a business, as well as the payment for the risk you take by giving up the opportunity cost of another economic activity?
dividends
laisez-faire
economic freedom
profit motive
A patent, which gives an inventor the sole right to make, use or sell his/her invention for 20 years is called:
real property
intellectual property
copyright
personal property
Specialization encourages trade so people no longer have to do everything for themselves (no matter how good or bad they are at it).
True
False
Shaun had some Snapple and Morgan had some jalapeno cheetos. Both wanted some of what the other had, so they made a barter. This is also known as a
laisez-faire
coincidence of wants
facilitation of convenience
Economic ________________________ creates a complex web of economic links that brings producers and consumers to a mutual market for exchange.
interdependence
engagement
devotion
simplicity
Jared owns a grocery store in King George and acquires food items from Florida and Alaska that he cannot produce for himself due to the region in which he is located. Florida provides navel oranges and tangerines. Alaska provides fresh salmon. This is an example of:
Competitive Advantage
Absolute Advantage
Comparative Advantage
Import Advantage
After graduation, Matt went into the Army. While in the service he worked his way up to Special Forces where he performs covert operations to save lives. The pay is extremely good but he is required to be away for many months at a time. While Matt was in high school, he excelled and earned certification in carpentry and always dreamed of building himself a log cabin he designed, but decided to hire someone to do it for him because of his tight schedule. This is an example of Absolute Advantage.
True
False
Janaire stepped out on faith and became an entrepreneur who developed and distributes her own cosmetics line. She incurs certain expenses that it takes to make her business work ~ like rent for her facility, advertising, insurance, electricity, etc. These are called __________________________ expenses.
commonwealth
marketing
gross margin
overhead
