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WorksheetsEconomics GMS Test Review
Total questions: 22
Worksheet time: 11mins
Which economic term best describes using money to earn more money?
selling
trading
investing
borrowing
You need to purchase a pair of sneakers since they are required for physical education class.Which is an example of effective decision making?
You buy the most stylish and expensive pair of sneakers you find.
You buy the first pair of sneakers you try on at the first store you visit.
You buy a pair of sneakers after considering fit, appearance, and cost.
You use your money to buy a pair of jeans instead of a pair of sneakers.
What 3 economic questions are asked when studying the similarities of a traditional, command, and market economy among nations of the world?
What to produce, why to produce, when to produce?
What is your opportunity cost, what economic resources are needed, why should these resources be used?
What to produce, how to produce, and for whom to produce?
What is your opportunity cost, why are economic resources needed, when should these resources be used?
In a traditional economic system people usually exchange goods or services rather than use money. Which of the following is an example of this exchange process?
bartering with a seller
using currency to pay
paying for services by check
charging goods on a credit card
In which economic system does a single authority decide what is produced?
market
public
traditional
command
Which of the following explanations would reflect a country with a mixed economy (i.e., between a pure market and pure command)?
A country’s distribution of resources is based on inheritance.
Prices and wages are solely regulated by a country’s government.
A combination of privately-owned industry and government control.
Prices and wages are determined by the laws of supply and demand rather than being regulated by a country’s government.
Which is the BEST example of specialization?
A large business makes a variety of goods.
A country has a large number of imports but no exports.
A farmer grows crops, harvest crops, and sells crops to individuals and businesses.
A factory builds seats that will be sold to different car manufacturers to be installed in a variety of cars.
A factory that builds only cars is an example of ________.
scarcity
specialization
interdependence
opportunity cost
Which word has the same meaning as the economic term "tariff"?
tax
debt
money
savings
What is the purpose of a tariff, such as a protective tariff?
to decrease the prices of imported goods so a country's people can buy what they need for the lowest cost
to increase the prices of imported goods and protect a country's own industries from foreign competition
to increase the prices of exported goods so a country's own businesses are less likely to send their products to other nations
to decrease the prices of exported goods so people in other countries will buy the foreign nation's product over one from home
The United Kingdom Customs Service has found toxic lead-based paint in toys imported from a Chinese toy-making company. These toys are intended for sale in the United Kingdom. Exposure to the paint over a long period of time could be fatal to children under 6 years old. What type of trade barrier would guarantee that no child in the United Kingdom would be exposed to the deadly lead-based paint?
tariff
quota
embargo
exchange rate
The United States has decided to put a limit on the number of European cars that can be imported. This is an example of __________.
tariff
quota
exchange rate
embargo
Brazil is building new factories and using newer technology. These are examples of _____.
Opportunity costs.
Gross domestic product.
Investment in capital goods.
Investment in human capital.
You are watching a speech by the Prime Minister of Australia on T.V. with your parents. The Prime Minister is explaining a plan for improving the Australian economy. In the speech, the Prime Minister says: “Our workers must be prepared for the high-tech jobs of the 21st century. My plan will give incentives to companies who provide technology education and training for their employees.”The Prime Minister’s plan is based on the conclusion that:
An embargo on technology from other countries will help the Australian economy.
An investment in capital goods will increase the country’s gross domestic product (GDP)
Adjusting the exchange rate will increase the profit the Australia makes in international trade
An investment in human capital will increase the country’s gross domestic product (GDP)
A country that does not invest in human capital will have problems because _______.
there will be no money to pay its workers
workers will learn on their own the skills they need
businesses will not pay the taxes to pay for good schools
workers who are not educated, skilled, and healthy are less productive
What are capital goods?
the workers who make the goods and services
the factories and machines used to make goods
money used to train workers to use new equipment
money available for scholarships to private schools
You are watching a speech by the Prime Minister of Australia on T.V. with your parents. The Prime Minister is explaining a plan for improving the Australian economy. In the speech, the Prime Minister says:“Our economy is too dependent on imports of oil from foreign countries.My plan for energy independence will focus on using sources of energy we already have here in the Australia—including oil & natural gas, wind,and solar power.” The Prime Minister’s plan is based on the conclusion that:
An investment in human capital will increase the country’s gross domestic product (GDP)
A tariff on oil imported from other countries will double Australia’s oil production.
An investment in capital goods will increase the country’s gross domestic product (GDP)
The development and use of domestic natural resources will help the Australian economy.
What is one positive role of natural resources in a country’s economy?
provides income as a valuable import
provides income as a valuable export
increases a country’s dependence on other countries
increases a country’s awareness of environmental issues
You are watching a speech by the Prime Minister of Australia on T.V. with your parents. The Prime Minister is explaining a plan for improving the Australian economy. In the speech, the Prime Minister says:“We must take make is easier for Australians to open small businesses.My plan will give tax breaks and incentives to Australians who want to start their own small business...”The Prime Minister’s plan is based on the conclusion that:
Promoting entrepreneurship will improve economic development.
Investing in human capital will increase the country’s gross domestic product (GDP).
Investing in capital goods will increase the country’s gross domestic product (GDP).
A tariff on goods imported from other nations will help Australian businesses compete.
Which is an example of an entrepreneur?
a manager of a business
a person who runs a government-owned news organization
a plumber who works for a company owned by an individual
a person who uses his/her money to start a business selling a product
Jose is an auto mechanic in a nearby larger town. He has decided his own small town needs its own car repair shop. Jose bought the building and opened his shop. Jose is an example of _____.
Trade surplus
Entrepreneur
Opportunity costs
Gross domestic product
Why is it important for nations to have a system for exchanging from one currency to another?
The dollar is the most valuable currency in the world.
Banks are not able to deal with different types of currencies.
Exchanging to different currencies makes products costs less.
Exchanging currencies makes it possible to buy and sell goods from different nations.
