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Economics: Chapter 2 Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

The purpose of government in a command economy is to:

a)

Ensure the availability of consumer products

b)

Make major economic decisions

c)

Encourage entrepreneurs

d)

Promote economic freedom

2.

The best example of a market economy is:

a)

The Inuit

b)

The former Soviet Union

c)

The United States

d)

North Korea

3.

Which group of people ultimately determines the products that a true free market economy produces?

a)

Congress

b)

Property Owners

c)

Local Government

d)

Consumers

4.

All of the following are characteristics of a command economy EXCEPT:

a)

It can change direction quickly

b)

Decentralized decision making

c)

It is not designed to meet the wants of consumers

d)

It provides workers with few incentives to work hard.

5.

A market economy:

a)

Does not provide for everyone's basic needs

b)

Limits the choices of goods and services available

c)

Allows extensive government assistance

d)

Offers a high degree of certainty for its workers.

6.

Unemployment insurance, workers compensation and social security are all examples of this economic goal:

a)

Economic Equity

b)

Economic Freedom

c)

Price Stability

d)

Economic Security

7.

Fair access for all

a)

Economic Freedom

b)

Economic Equity

c)

Economic Security

d)

Full Employment

8.

Gives people the ability to make economic decisions for themselves

a)

Economic Freedom

b)

Economic Security

c)

Full Employment

d)

Economic Efficiency

9.

When people work, they can provide for themselves and their family while also providing goods and services to society,

a)

Economic Equity

b)

Economic Efficiency

c)

Full Employment

d)

Economic Security

10.

This picture illustrates what economic system?

a)

Market

b)

Command

c)

Socialism

d)

Traditional

11.

Americans expect the American Dream - They hope to have a better job, newer car, own home etc. This defines what goal?

a)

Economic Security

b)

Economic Equity

c)

Economic Growth

d)

Economic Freedom

12.

Because resources are scarce, the factors of production must be used wisely. If resources are wasted, fewer goods can be produced.

a)

Economic Stability

b)

Price Stability

c)

Economic Equity

d)

Economic Efficiency

13.

A fair distribution of wealth is supported by this economic goal:

a)

Price Stability

b)

Economic Equity

c)

Economic Efficiency

d)

Economic Security

14.

Where would the United States' economy be located in the diagram above?

a)

W

b)

X

c)

Y

d)

Z

15.

We like to choose our own occupations, employers and how we use our money. This fits what goal?

a)

Economic Growth

b)

Economic Freedom

c)

Economic Security

d)

Economic Equity