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Economic Unit Review

Total questions: 34

Worksheet time: 1hrs 19mins

Name
Class
Date
1.

What is a consumer?

a)

A person who is a consumer

b)

A person who makes good and services.

c)

A person who does work for others

d)

A person who buys goods and services.

2.
What is a producer?
a)
Producers are only used in the music industry.
b)
A person who makes and sells goods and/or services.
c)
A person purchasing the good or service.
d)
Producers and consumers are the exact same thing.
3.
What are goods?
a)
Things in the world.
b)
Things that are made or grown and then sold.
c)
Only positive things that happen to consumers.
d)
An activity that a business or person trades for payment.
4.
Trading something for something else - no currency involved
a)
demand
b)
barter
c)
goods
d)
market
5.

What does GDP stand for?

a)

Goods Domestically Produced

b)

Gross Domestic Plans

c)

Gross Domestic Product

6.

__________ is the consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service. For example: 18 students want to create a poster using blue paper.

a)

Demand

b)

Supply

c)

Excess demand

d)

Excess supply

7.

What does Gross Domestic Product

mean?

a)

The total value of all goods and services a country imports.

b)

The total value of all goods and services a country exports.

c)

The total value of all goods and services produced within a country in one year.

d)

The net loss in profits within a country due to imports.

8.

The___________ a country’s GDP, the better the country’s standard of living.

a)

lower

b)

greater

c)

equal

d)

None of the above

9.

Export means

a)

buying goods from another country

b)

selling goods to another country

c)

only making one kind of product

10.

Imports are defined as:

a)

Products brought in from another country

b)

Goods sold to other countries

c)

Products made/sold within a country

11.

What is a Tariff?

a)

A tax on imported and exported goods

b)

A price marked on goods

c)

Profit made from manufactured goods

12.

countries that have a high per capita income and quality of life is generally good

a)

Less Developed Countries

b)

More Developed Countries

c)

Supply

d)

Demand

13.

a shortage or lack of supply

a)

demand

b)

scarcity

c)

consume

d)

supply

14.

The concept of Economics means:

a)

a system of destroying, storing, and consuming goods and services

b)

a system of not producing needed goods and services

c)

a system of producing, distributing, and consuming goods and services

d)

a system of growing plants and trees to better the environment

15.

The value of the next best thing you give up whenever you make a decision is known as:

a)

outsourcing

b)

Inflation

c)

scarcity

d)

opportunity cost

16.

Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?

a)

Shoes

b)

Jacket

c)

Dress

d)

Purse

17.

In 1962, President John F. Kennedy faced escalating tensions with Russia because they were caught building up nuclear weapons in Cuba. His response was to declare that the United States prohibited all imports and exports to and from Cuba. This decision is called:

a)

Tariff

b)

Embargo

c)

Quota

18.
Why would a country impose a tariff or quota on imported goods?
a)
to raise the price of imported goods and encourage people to buy local
b)
to raise the price of imported goods to help other countries make more money
c)
to be mean!
19.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
20.

What is inflation?

a)

Increase general price level of goods and services

b)

Increase price level from one private organisation

c)

Decrease general price level of goods

d)

Increase general price level of services

21.

Peyton wants AF1 sneakers for her 11th birthday. Nike made only 300 shoes to sell in the United States even though thousands of people desire to buy them. The price of the shoe increases (meaning inflation) because of what reason:

a)

demand

b)

cost

c)

built in

d)

tariffs

22.

Comparative advantage is defined as

a)

a person/nation that has a higher opportunity cost of producing goods

b)

a person/nation with the same opportunity cost as another

c)

a person/nation that has a lower opportunity cost of producing goods

23.

The transfering of work from a specific area of the company ( e.g. accounting, manufacturing) to an outside supplier, which can be done to a company that is located in the home country or anywhere else is called______.

a)

Offshoring

b)

Outsourcing

c)

Globalization

24.

Which of these is NOT a benefit of outsourcing jobs?

a)

Residents in other countries learn about a company’s product

b)

Workers in the UK. lose their jobs

c)

A company makes a larger profit because the cost of labour is lower.

25.
NAFTA is an agreement between all of the following countries EXCEPT
a)
United States
b)
Mexico
c)
Great Britain
d)
Canada
26.
Free trade means 
a)
the countries use the same currency
b)
No trade barriers
c)
there is a quota on some goods
d)
trade is quick and easy
27.

What is the purpose of NAFTA?

a)

To increase trade between all countries

b)

To help Canada become a more independent nation

c)

To eliminate the environmental issues between the nations involved

28.
What does WTO stand for?
a)
World Trade Organisation
b)
World Telecoms Organisation
c)
We Trade Oranges
d)
World Tarriff Office
29.
What is the most important job of the WTO?
a)
Resolve trade disputes
b)
Set oil prices
c)
Support developing countries
d)
Decide on border disputes
30.

This image shows some information about GATT (General Agreement on Tariffs and Trade) and the WTO (World Trade Organization). Determine if this statement is correct: The WTO was *NOT* able to handle trade issues/disputes quicker than GATT.

a)

true

b)

false

31.

This picture shows a trade deficit because

a)

trade is equal in exports and imports

b)

imports are less than exports

c)

imports exceed exports

d)

none of the above

32.

The country that has the LARGEST trade deficit with the USA is:

a)

Canada

b)

China

c)

Germany

d)

Japan

33.

A trade surplus is when:

a)

imports are equal to exports

b)

imports exceed exports

c)

countries sell (export) more than they buy (import)

d)

None of the above

34.

According this chart from 2018, the United States has a trade surplus with the country of ___________________.

a)

Canada

b)

China

c)

Mexico

d)

Japan