Free Printable Economies and Markets

Worksheets

Economies and Markets

Total questions: 25

Worksheet time: 6mins

Name

Class

Date

The basic economic problem arises because:

Wants are unlimited and the means of satisfying them are relatively scarce

Various countries have different types of economies

Different people have quite different needs

Human behaviour is unpredictable

Read the following two statements:
***People want more things than they have money to buy.
***The goods and services a society can produce at any one time are limited.
What problem results from these two conditions?

Imbalance of Power

Scarcity

Excessive Wealth

Opportunity Cost

As the demand for a product increases and the supply decreases, the price most likely will

increase

decrease

stay the same

In a market or mixed market economy, how is the question "What to produce" answered?

dependent on the government's agenda

dependent on what the business owner likes to do

dependent on what the consumer needs or wants

A _____________ economy is completely determined and controlled by a central planning authority or the government

Traditional

Planned/Command

Mixed

Free Market

The four factors of production are:

Wages, social welfare, interest and commission

Wages, rent, interest and profit

Land, capital, labour and enterprise

Land, labour, consumption and enterprise

An increase in injections into the Circular Flow Model for the Australian economy can be caused by

An increase in government spending on welfare payments

An increase in consumer spending on Japanese motor vehicles

An increase in income taxes

An increase in interest rates

What effect does competition have on producers in a market economy?

Producers share their resources equally.

Producers look to the government to divide resources.

Producers improve the quality of their goods to increase sales.

Producers raise prices since they expect to sell fewer items.

Someone that takes risks and opens his or her own business.

Buyer

Capital Good

Consumer

Entrepreneur

10.

In a market economy, how are economic decisions made?

Government planners & customs

Custom and habit.

Government planners

Buyers & sellers

11.

Which is a type of capital good?

nurse

tree

engineer

hammer

12.

Economics is making decisions about how to allocate limited resources to acquire our ___ wants

scarce

restricted

limited

unlimited

13.

Which is a key economic question faced by all countries?

How big should the army be?

How much money should be raised in taxes?

How may schools should be built?

How should goods and services be produced.

14.

The circular flow model of a market economy shows

how profits are made

what inputs are required for what outputs

how many firms can support the needs of how many households

the interactions between households and firms in the free market

15.

The most basic economic problem is referred to as supply and demand.

True

False

16.

Governments with market economies rarely enact laws to encourage competition.

True

False

17.

The conflict between unlimited wants and limited resources is called

competition

capitalism

scarcity

the profit motive

18.

The desire to work hard, to be creative, and to satisfy customers in order to earn a profit is called

competition

supply and demand

capitalism

the profit motive

19.

To decide how to use its scarce resources, a country must answer three key economic questions. Which of the following is NOT one:

what to produce

how should things be produced

how many items should be produced?

for whom should they be produced

20.

What is a group of people who want a product and are able to buy it?

Market

Consumer market

Business Market

Producer

21.

Which is not a characteristic of a market?

They need or want the product

They are able to buy the product

They are not willing to buy the product

They have the authority to buy the product

22.

Which type of business makes goods and services?

Producer

Reseller

Institution

Government

23.

Which of the two buys the product?

Consumer

Customer

24.

Which of the following are examples of goods?

Apples, Computers, Clothing

Firemen, Police Officers, Soldiers

Health, Love, Friendship

25.

Which of the following are examples of services?