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Economics test review

Total questions: 25

Worksheet time: 17mins

Name
Class
Date
1.

Which of the following is true about the free enterprise/market economy?

a)

There is competition.

b)

People control and own businesses and private property.

c)

People are motivated by profit.

d)

All of the above

2.

The quantity or amount of a good or service that are available.

a)

demand

b)

supply

c)

wage

d)

interest

3.

To trade not using money.

a)

switch

b)

swap

c)

barter

d)

profit

4.

When the supply is greater than the demand of a good, the price ______________.

a)

goes up

b)

goes down

c)

stays the same

5.

The relationship between the amount of goods that exist and the amount that people are willing to buy

a)

Taxes

b)

Free Market Economy

c)

Economy

d)

Supply and Demand

6.
People own their own goods and property; producers are free to decide what goods and services to make and what prices to charge.
a)
Command Economy
b)
Free Market Economy
c)
Traditional Economy
d)
The Cheese Economy
7.

Government rulers tell members of society how the much to produce and the price.

a)

Command Economy

b)

Free Market Economy

c)

Traditional Economy

d)

The Chicken Economy

8.

Define Supply

a)

a consumer's willingness to pay a set price for a specific good or service

b)

the amount of product that a producer is willing and able to sell in the marketplace

c)

more items available for sale than people want to purchase

d)

more people want an item than is available for purchase

9.

If the store has 100 packs of toilet paper and 200 people want to buy it, is it a shortage or surplus?

a)

shortage

b)

surplus

10.

Sometimes stores will put things on sale so that there won't be a surplus of goods leftover.

a)

True

b)

False

11.

If 2 people want a soccer ball, is there a scarcity?

a)

Yes, there is a scarcity.

b)

No, there is not a scarcity.

12.

A Trade-off is

a)

a purchase in a marketplace.

b)

an alternative that we sacrifice when we make a decision.

c)

any good or service a consumer needs.

d)

a factor of production.

13.

What name is given to the value of the next best alternative that you give up when you make a decision?

a)

Trade-offs

b)

Opportunity cost

c)

Lost opportunities

d)

Options

14.

In my country my job is the same one that my family has done over the past 200 years.

a)

Traditional

b)

Command

c)

Market

d)

Mixed

15.

,In my country, the government tells me where to work.

a)

Traditional

b)

Command

c)

Market

d)

Mixed

16.
What are the 3 economic questions?
a)
What to produce? How To Produce? For whom to produce?
b)
Who to produce? Why you produce? Like to produce?
c)
Why to produce? Tell who to produce? Things to produce?
17.
The four types of economic systems are: 
a)
Traditional, Command, Mixed, & Market
b)
Traditional, Command, Combined, & Market
c)
Communism, Capitalism, Free Market, and Macroeconomics
d)
Microeconomics, Macroeconomics, Individual, and Traditional.
18.
Which economy is dictated by supply and demand and the buyers and sellers?
a)
Market
b)
Socilaism 
c)
Mixed 
d)
Command 
19.
Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
20.
When the demand for a product or service is higher than the supply this causes what?
a)
shortage
b)
consumer
c)
surplus
d)
equilibrium
21.
The point where supply and demand are balanced is?
a)
product
b)
demand
c)
surplus
d)
equilibrium
22.

What will happen to the price of shoes if shoe producers have to pay higher wages to their workers?

a)

The price will increase

b)

The price will decrease

23.

What will happen to the price of T-Shirts if T-Shirt businesses now use machines that produce twice as many shirts in one hour?

a)

The price will increase

b)

The price will decarese

24.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
25.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage