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Economics Today

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

The type of economic system where the government has some say in how businesses produce for consumers, but it's mostly up to the producers.

a)

traditional

b)

market

c)

mixed

d)

command

2.

If Red Hen had been a professional baker, the use of her oven to make bread would be called a

a)

natural resource

b)

human resource

c)

executive resource

d)

capital resource

3.

Chipotle has an app you can download to earn loyalty points for every purchase. In economics, what do you call this?

a)

positive incentive

b)

negative incentive

c)

productive resource

d)

positive resource

4.

Goods and _________________ are a major part of economics.

a)

products

b)

services

c)

regulation

d)

demand

5.

Another word for a business person is

a)

investor

b)

consumer

c)

producer

d)

lender

6.

The United States has what type of economic system?

a)

traditional

b)

market

c)

mixed

d)

command

7.

The value of something you give up when you choose one thing over another thing

a)

trade-in

b)

opportunity cost

c)

productive resource

d)

supply and demand

8.

What risk did David Jacobs eliminate by starting the Spyder business out of his kitchen?

a)

investing too much money in the business before knowing if he'd be successful

b)

selling his business to Hanson Industries

c)

offering gear to Olympic skiers so his product gained popularity

d)

selling the patent to his revolutionary ski pants to another company when he didn't have much money

9.

Why is it important for people who make an income from careers paid out of state budgets that local business people are successful?

a)

sales tax on business purchases adds to the state revenue

b)

business owners who are wealthy are able to donate to the state

c)

politicians are re-elected when businesses do well

d)

a business bankruptcy does not add to the state's costs

10.

A market economy is run by ______________________.

a)

a central leader

b)

government acts

c)

private enterprise

d)

labor unions

11.

One disadvantage of a traditional economy is

a)

Requires a large bureaucracy

b)

Citizens is not fair to all people

c)

People can stop innovating due to government oversight

d)

When harvest or hunting is poor, people starve

12.

One advantage of a market economy is

a)

Not as destructive to the environment

b)

Cheap public services offered to everyone

c)

Government makes sure the economy is improving

d)

Products are produced in the most efficient way possible

13.

One disadvantage of a mixed economy is

a)

government can become large and too powerful

b)

human resources are not optimized

c)

struggles to meet small changes in society

d)

vulnerable to changes in nature

14.

A disadvantage of a traditional economy is

a)

Vulnerable to other economies taking them over

b)

Citizens lose motivation and innovation due to excess regulation

c)

Society reflects the values of the powerful

d)

It is an obsolete way of running a country

15.

How does a traditional economy decide "what to produce"?

a)

The government decides.

b)

Businesses and consumers decide.

c)

Producers compete for consumer choice.

d)

Only produce what they need to survive. No surplus or leftovers.

16.

In a market economy, those who want to be wealthy _____________________ the economy.

a)

have no effect on

b)

help

c)

hurt

d)

are in charge of

17.

People in a market economy choose how they will earn their living.

a)

True

b)

False

18.

The prices of goods in a market economy are a result of supply and ______________________.

a)

risk

b)

opportunity cost

c)

consumption

d)

demand

19.

In a command economy, the government controls goods and services.

a)

true

b)

false

20.

Goods that are received from another country are

a)

foreign

b)

imports

c)

exports

d)

revenue