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AKS 5 Economic Enviroment

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

The organized way a nation provides for the needs and wants of its people is referred to as?

a)

Customs

b)

Economy

c)

Systems

2.

Things used in producing goods and services are called?

a)

Items

b)

Property

c)

Resources

3.

Which of the following is NOT one of the factors of production?

a)

Entrepreneurship

b)

Labor

c)

Capital

d)

Roads

4.

What is the physical development of a country referred to as?

a)

Land

b)

Infrastructure

c)

Capital

5.

The process of starting and running a business is called?

a)

Philanthropy

b)

Resources

c)

Entrepreneurship

6.

What is scarcity?

a)

The available resources a country has and the wants of the people

b)

The available land a country has that the wants of the people

c)

The needs that a country has and how the government wants to use it

d)

The difference between the wants and needs and available resources a country has

7.

Which of the following is NOT one of the three goals of a healthy economy?

a)

Increase productivity

b)

Decrease unemployment

c)

Maintain stable prices

d)

High inflation

8.

Which of the following is NOT on the key economic measurements used to determine economic strength?

a)

Inflation rate

b)

Gross domestic product

c)

Unemployment rate

d)

Stock market average

9.

How can businesses increase productivity?

a)

Investing in used equipment of facilities

b)

Provide additional training for employees

c)

Increase the workforce and decrease their responsibilities

10.

The output of goods and services produced by labor and property within a country is known as?

a)

GNP

b)

GBP

c)

GCP

d)

GDP

11.

The total dollar amount of goods and services produced by a nation is called?

a)

GNP

b)

GBP

c)

GCP

d)

GDP

12.

The quantity of a good or service that consumers are ready to buy at a given time at a given price is referred to as?

a)

Demand

b)

Desire

c)

Supply

d)

Stock

13.

The measurement of the amount and quality of goods and services that a nations people have is referred to as their?

a)

Standard of want

b)

Standard of work

c)

Standard of living

d)

Standard of life

14.

Which measure for inflation measures change in price over a period of time for over 400 products and services used by the average household?

a)

Producer Price Index

b)

Consumer Price Index

c)

Product Price Index

15.

Which of the following is NOT one of the three questions a nation must ask when deciding how to use their limited resources?

a)

Which goods and services should be produced?

b)

How should the goods and services be produced?

c)

For whom should the goods and services be produced?

d)

Where should the goods and services be produced?

16.

In which economic system does the government have no involvement in economic decisions?

a)

Traditional Economy

b)

Market Economy

c)

Command Economy

d)

Mixed Economy

17.

In which economic system does the government make all the economic decisions?

a)

Traditional Economy

b)

Market Economy

c)

Command Economy

d)

Mixed Economy

18.

Which of the following is NOT one of the five Utilities?

a)

Form

b)

Place

c)

Information

d)

Product

19.

Changing raw materials or putting parts together to make them more useful is which utility?

a)

Form

b)

Place

c)

Possession

d)

Time

20.

According to the law of demand the quantity of a good or service that consumers will buy varies inversely with the price.

a)

True

b)

False

21.

According to the law of supply the quantity of a good or service offered for sale varies inversely with price.

a)

True

b)

False

22.

According to the law of supply and demand the supply of a good or service will increase when the demand is great and will fall with the demand is low.

a)

True

b)

False

23.

The point at which quantity buyers want to buy equals the quantity that sellers want to sell is known at equilibrium price.

a)

True

b)

False

24.

When there is a change in the price of an item, but demand for that item stays constant is it said to be elastic.

a)

True

b)

False

25.

Controlling inflation is one of the government’s major goals.

a)

True

b)

False