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WorksheetsSocial Studies Chapter 4 Review: THE NATION'S ECONOMY
Total questions: 45
Worksheet time: 23mins
Choose the word which matches this definition:
the separation of a work process into a number of different jobs
division of labor
producer
advertising
profit
Choose the word which matches this definition:
a person or company who makes a good or a service to sell to others
division of labor
producer
advertising
profit
Choose the word which matches this definition:
the use of public notices to bring attention to a product or service
division of labor
producer
advertising
profit
Choose the word which matches this definition:
the difference between a business’s total sales and the business’s total expenses
division of labor
producer
advertising
profit
Choose an item that is a need:
clothing
soccer ball
skateboard
laptop computer
Which is the difference between a free market economy and a command economy?
In a free market economy, consumers decide which goods and services will be created. In a command economy, the government decides.
In a free market economy, producers decide which goods and services will be created. In a command economy, the government decides.
In a free market economy, the government decides which goods and services will be created. In a command economy, the consumers decide.
In a free market economy, the government decides which goods and services will be created. In a command economy, the producers decide.
How has technology changed communication, or the sharing of ideas and information?
Innovations such as e-mail have made communication faster and cheaper.
Fewer people need to communicate with each other now than did before.
Communication has become much more expensive than it once was.
People spend a lot more time and money communicating now.
Which is an example of the government providing a public service?
roads
schools
highways
mail delivery
Choose the word which matches this definition:
a system in which producers have the right to create and goods or services they want (also known as a market economy)
command economy
consumer
free enterprise system
private property
Choose the word which matches this definition:
refers to an entire area or country in which thins are bought and sold freely (also known as a free enterprise system)
command economy
market economy
communism
private property
Choose the word which matches this definition:
in this economy, the government decides what goods and services can be made and sold. The government tells producers how much of something to produce and the government sets the price.
command economy
market economy
private property
Which is an example of bartering?
paying money for a ticket to an amusement park
refusing to buy a game because the price went up
trading a baseball card to someone for a pack of gum
buying two pairs of shoes and getting one of them for half price
Which describes inflation?
when people trade goods and services instead of paying for them
when the amount of a resource, such as water, is limited
when the supply of a product is greater than the demand for the product
when the usual price of many goods and services rises
Why do entrepreneurs take risks to open businesses?
They believe that their ideas for businesses can make money.
They believe that they will not lose any money if their businesses fail.
They know that their ideas are too good to fail.
They know that banks will always lend them more money if they need it.
Which is true of the most successful companies?
They create a huge supply of products.
They sell products that are very cheap to produce.
They create products that have a high demand.
They make products that will sell for a very high price.
Choose the word which matches this definition:
the amount of a resource is limited
incentive
scarcity
interest
barter
Which is an example of an opportunity cost?
realizing that you need five pounds of apples when the store only has three pounds
having to choose between two items because you can’t afford both
buying yourself a T-shirt and a pair of jeans
trading a pair of boots for a baseball glove
When you choose between two items, the ______________ is the value of the item you didn't buy.
advertisement
incentive
opportunity cost
inflation
Which sector provides the most full-time jobs in the United States?
Construction
Manufacturing
Agriculture
Service
Which sector provides about 7 million full-time jobs in the United States?
Construction
Manufacturing
Agriculture
Mining
What are the three basic questions that all economies must answer? ***
1.What goods and services should be produced?
2.How should they be produced?
3.Who should they be produced for?
1.What advertising should be used?
2.How should goods be sold to other countries?
3.Who should have the rights to buy goods?
What are examples of personal economic choices that people make every day? ***
Choose all that apply.
A person who decides to bring lunch to school/work or to buy lunch.
A person who decides to buy shoes to save the money for something else.
A person who decides between purchasing jeans or waiting to look for a cheaper pair.
A person who walks to school.
How does a free enterprise system, or market economy, produces goods and services. ***
Choose all that apply.
Producers have the right to create any goods or services they want.
Producers set the prices and quantities for their goods and services.
The government tells producers which goods or services they can create.
The government sets the prices and quantities for goods and services created by producers.
How do banks encourage people to save money? ***
Banks offer interest on the money saved in the bank.
Banks offer opportunity cost on the money saved in the bank.
Banks offer inflation on the money saved in the bank.
Banks do not offer any incentives to save money.
Choose the word which matches this definition:
money that is added to your bank account regularly, usually once a month ***
incentive
interest
advertising
profit
What do banks do with the money people have saved? ***
Banks give the money out as loans to borrowers who pay it back over time.
Banks keep the money.
Banks give the money to the government, which uses it to pay for public services.
Banks donate the money to charities to help children in the United States.
Why do people need an income?
to afford to buy things they need and want
to learn how the economy works
to save it in the bank so the money gains interest
Why do people loan money from banks?
Choose all that apply.
to buy a house
to pay for college
to start a business
Why is it important to make smart choices when spending money?
once the money is spent, you cannot spend it again
once the money is spent, you can always make more money
money is easy to make, so I don't need to make smart choices with money
How do goods and services get transported from one place to another? Choose all that apply.
cargo ships
airplanes
trains
trucks
hot air balloons
Choose the word which matches this definition:
the process through which goods and services spread between different countries
division of labor
outsourcing
advertising
globalization
Choose the word which matches this definition:
the economic connection between countries
division of labor
outsourcing
interdependence
globalization
Which is an example of a need?
Choose all that apply.
food
movie tickets
shelter
ice skating lessons
Which is an example of a want?
Choose all that apply.
food
movie tickets
shelter
ice skating lessons
Which is true about a free enterprise system?
The government decides what goods can be sold.
The government decides what services can be offered.
Producers can decide what goods or services to sell.
Producers cannot decide how much to produce.
Fill in the blanks by selecting TWO answers.
An _______________ is willing to take ____________ in the hope that his or her new business will earn a profit.
interest
entrepreneur
risks
economy
government
Individuals and families make economic decisions every day.
True
False
Our choices are shaped by our wants and needs, as well as scarcity.
True
False
Innovations in transportation and communication have not increased trade between countries.
True
False
Specialization and the division of labor have increased productivity.
True
False
Every economy answers three questions: What goods and services should be produced? How should they be produced? Who should they be produced for?
True
False
The United States has a market economy.
True
False
In the modern economy, money is traded for goods and services.
True
False
Entrepreneurs take risks by starting new businesses in the hope of making a profit.
True
False
What is the opportunity cost of buying a video game instead of buying a new pair of sneakers?
having fun playing the video game
not having the pair of sneakers
the money that was spent on the video game
