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WorksheetsCH 1, 2, & 3 Review
Total questions: 67
Worksheet time: 50mins
Name
Class
Date
1.
Which is NOT an indicator of a country's economic health?
a)
GDP
b)
Standard of Living
c)
environmental awareness
d)
inflation
2.
Which is NOT considered an indicator of a higher standard of living?
a)
increasing availability of goods
b)
decreasing availability of goods
c)
increasing availability of services
d)
increasing purchase of luxury goods
3.
What should happen to unemployment if the economy is picking up?
a)
It decreases
b)
It reverts to previous levels
c)
It remains the same
d)
It increases
4.
What is the main source of income for governments?
a)
taxes
b)
education
c)
budget surplus
d)
social security
5.
Which term applies when a government makes more money than it spends in a year?
a)
budget deficit
b)
national debt
c)
budget surplus
d)
revenue
6.
In the business cycle, what generally comes after a period of depression?
a)
prosperity
b)
recession
c)
recovery
d)
another depression
7.
What is another term for a period of economic prosperity?
a)
demand
b)
decline
c)
downturn
d)
peak
8.
Which is true of a recession?
a)
businesses produce less
b)
wages are higher
c)
new businesses open
d)
more people buy houses
9.
Which would NOT characterize a depression?
a)
high unemployment
b)
low wages
c)
less goods and services produced
d)
decreased capacity in manufacturing plants
10.
The total value of the goods and services produced in a country in a given year is called its _________.
a)
economic performance
b)
gross domestic product
c)
national production
d)
standard of living
11.
An increase in the unemployment rate indicates an economy is ______.
a)
picking up
b)
market driven
c)
saturated
d)
slowing down
12.
During a time of inflation, a person's buying power ___________.
a)
accelerates
b)
decreases
c)
fluctuates
d)
increases
13.
The total amount of money a government owes it its _________.
a)
balance of trade
b)
budget deficit
c)
national debt
d)
public liability
14.
When a government's revenue exceeds its expenditures during a one-year period it has a ______________.
a)
balanced budget
b)
budget deficit
c)
budget surplus
d)
positive budget
15.
The rise and fall of economic activity over time is called the__________.
a)
business cycle
b)
fiscal trend
c)
economic pattern
d)
market sequence
16.
A peak of economic activity is called __________.
a)
inflation
b)
prosperity
c)
growth
d)
wealth
17.
What is scarcity?
a)
unlimited wants and needs
b)
a shortage of resources
c)
a lack of goods and services
d)
limited expenses
18.
Which is not a factor of production?
a)
natura resources
b)
labor
c)
capital
d)
the marketplace
19.
Which statement about natural resources is true?
a)
Water is renewable because it can be reproduced.
b)
Lumber is not renewable because it takes a long time to grow new trees.
c)
Coal is renewable because there is still so much in the ground.
d)
Agricultural products are renewable because new crops can be grown each season.
20.
Which means the same as human resources?
a)
capital resources
b)
service providers
c)
labor resources
d)
unskilled workers
21.
Which is an example of a capital resource?
a)
a machine used to make molded plastic toys
b)
a customer service representative
c)
money borrowed from a bank
d)
the president of a company
22.
Which refers to how people satisfy their needs and wants by making choices?
a)
entrepreneurship
b)
economics
c)
equilibrium
d)
opportunity
23.
What is opportunity cost?
a)
the income people receive by taking risks
b)
giving up the chance to use a resource for one thing instead of another
c)
the methods and labor used to produce a good
d)
the income people have to purchase goods and services
24.
What are two basic types of economic systems?
a)
supply and demand
b)
competition and profit
c)
private enterpeise and free enterprise
d)
market economy and command economy
25.
Which is true about people working in a market economy who have labor skills that are in demand?
a)
Their earnings are the same as other workers their age.
b)
Their incomes tend to be lower than others whose skills are not in demand.
c)
Their incomes tend to be higher than others whose skills are not in demand.
d)
Their earnings are not related to demand.
26.
Which is most likely to happen when the price of a product or service is high?
a)
demand falls
b)
profits rise
c)
supply increases
d)
competition decreases
27.
Raw materials from nature are called __________ resources.
a)
envrionmental
b)
natural
c)
physical
d)
renewable
28.
The economic resources needed to make a society's goods and services are called factors of ____________.
a)
economy
b)
scarcity
c)
production
d)
society
29.
Individuals who start and direct businesses to produce goods and services are called _____________ resources.
a)
entrepreneurial
b)
global
c)
labor resources
d)
virtual
30.
Factors of production can all be categorized into _________ groups.
a)
one
b)
two
c)
three
d)
four
31.
The amount of natural resources available to a society has a(n) _____________ effect on its economy.
a)
adverse
b)
circuitous
c)
direct
d)
oblique
32.
The three basic economic questions begin with each word except _______.
a)
how
b)
who
c)
what
d)
why
33.
The United States is primarily a __________ economy.
a)
command
b)
market driven
c)
consumer
d)
mixed
34.
The point at which the quantity demanded and the quantity supplied meet is called the _________ price.
a)
break-even
b)
dynamic
c)
compromise
d)
equilibrium
35.
The amount of goods that producers will provide at various prices is called the ___________.
a)
quantity
b)
stock
c)
supply
d)
reserve
36.
The law of supply states that when price goes up, ______________.
a)
quantity demanded goes up
b)
quantity supplied goes up
c)
quantity demanded goes down
d)
quantity supplied goes down
37.
In a command economy, key economic decisions are made by ____________.
a)
the government
b)
the people
c)
the marketplace
d)
entrepreneurs
38.
What drives the economy?
a)
goods and services
b)
wants and needs
c)
resources
d)
consumers
39.
Which is NOT true of public wants?
a)
They are widely shared by many
b)
Government satisfies public wants
c)
They are often considered private
d)
Examples include highways and parks
40.
Which is a name for items that people can use to make or obtain what they need or want?
a)
resources
b)
goods
c)
services
d)
products
41.
Which is true of resources?
a)
Resources are unlimited
b)
Businesses and governments lack resources
c)
Insurance and tourism are examples of resources
d)
Resources are limited.
42.
What is a commercial activity that seeks profit by providing goods in exchange for money?
a)
profit
b)
market research
c)
competition
d)
a business
43.
What is profit?
a)
commercial activity
b)
motivation and wealth
c)
money remaining after costs have been paid
d)
an opportunity to earn a better living
44.
Which is not true of businesses?
a)
They pay taxes and provide jobs.
b)
The wealth they create benefits the entire community.
c)
They are rewarded with profits by satisfying consumers.
d)
They can survive without profits.
45.
What is competition?
a)
a contest to win customers
b)
the freedom to produce new products
c)
voluntary exchange
d)
inexpensive goods and services
46.
Which is not something a competitive business needs to offer?
a)
quality products
b)
discontinued goods
c)
outstanding service
d)
good prices
47.
What must a business do when developing new products or services?
a)
evaluate demand
b)
lend money
c)
pay taxes
d)
focus on customer service
48.
What is one result of effective market research?
a)
immediate access to global markets
b)
immediate access to start-up capital
c)
information that helps a business identify opportunities
d)
improved production management
49.
What might a business do if its products don't meet consumer's needs?
a)
consider bankruptcy
b)
start a new business
c)
try new selling techniques
d)
modify its products to satisfy consumers
50.
Wants that are widely shared by many people are called ____________.
a)
private wants
b)
public wants
c)
needs
d)
goods and services
51.
Tasks that businesses perform for consumers are known as _________.
a)
services
b)
goods
c)
resources
d)
fees
52.
Resources limit the number of needs and wants that people can _________.
a)
make
b)
desire
c)
satisfy
d)
enjoy
53.
For companies to compete successfully in a global market, they must combine quality, excellent service, and _________.
a)
market share
b)
popularity
c)
choice
d)
competitive prices
54.
The act of gathering and analyzing information about the needs, wants, and preferences of consumers in a certain market share is called ___________.
a)
being nosy
b)
planning
c)
doing your job
d)
market research
55.
A person who buys goods or services is called ___________.
a)
consumer
b)
customer
c)
rich
d)
lucky
56.
A person who uses goods or services is called ___________.
a)
consumer
b)
customer
c)
rich
d)
lucky
57.
The decision to stop manufacturing products is often because of decreased ____________.
a)
price
b)
business size
c)
demand
d)
competition
58.
When consumers choose not to purchase a business's products or services the business usually ___________.
a)
succeeds
b)
loses
c)
wins
d)
fails
59.
A company's office buildings are an example of ____________.
a)
capital
b)
labor
c)
land
d)
entrepreneurship
60.
What is the basic problem of economics?
a)
pricing
b)
scarcity
c)
consumer behavior
d)
government policies
61.
A major characteristic of a pure market economy is __________.
a)
unrestricted competition
b)
an oversupply of labor
c)
strong government planning
d)
regulated prices
62.
Every purchase decision involves the use of two scarce resources,
a)
income and expenses
b)
energy and time
c)
budgets and capital
d)
price and income
63.
The quantity demanded of a product is affected by _________________.
a)
output vs. input
b)
surplus quantities
c)
price
d)
shortages
64.
The total dollar value of all the nations final goods and services produced over the course of a year is called _________________.
a)
net exports
b)
GDP
c)
GNP
d)
CPI
65.
What happens when inflation occurs?
a)
The purchasing power of the dollar increases.
b)
The purchasing power of the dollar declines.
c)
The value of a good declines with wear and tear.
d)
The business cycle quickly reaches a peak or prosperity.
66.
Unemployment caused by up and down fluctuations in the business cycle is called ____________.
a)
cyclical unemployment
b)
structural unemployment
c)
seasonal unemployment
d)
frictional unemployment
67.
High unemployment is usually a sign that
a)
the economy is getting better
b)
government spending is on the increase
c)
purchasing has slowed
d)
government has increased the money supply
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