WorksheetsMod 5: "Economics" Test Review
Total questions: 24
Worksheet time: 13mins
A system of producing, selling, and buying goods and services is known as...
opportunity cost
choice
money
economy
Which statement best characterizes opportunity cost?
The amount of goods that business are able to produce.
The amount of money left over after expenses have been paid.
The number of people who are ready to buy a product at a certain price.
The value of a product that you give up in a trade-off for another product.
In the four factors of production, which factor is "used to make a finished product"?
natural resources
capital
labor
entrepreneurs
In the four factors of production, which factor is "the machinery used to make a finished product"?
natural resources
capital
labor
entrepreneurs
In the four factors of production, which factor is "people who run the machines to make the finished product"?
natural resources
capital
labor
entrepreneurs
In the four factors of production, which factor is "people who finance the business to make finished products to sell "?
natural resources
capital
labor
entrepreneurs
Which of the following scenarios accurately illustrates the concept of economic interdependence?
An entrepreneur decides to open a bakery and produces bread for the neighborhood.
Good rainfall allows a farmer to produce more strawberries and he chooses to expand his business.
Japan lacks iron to make steel, so Japan enters into a trading relationship with Australia and Brazil, who supply Japan with iron ore.
South Africa is rich in diamonds, gold, and mineral resources, so South Africa crates a mining industry that produces much wealth.
You live in a society whose economic system is based on agriculture and bartering. A group of leaders decide all of the jobs and responsibilities for the people in the land. What type of economic systems does your society have?
traditional
command
market
You live in a society whose economic system is controlled completely by the government. Central planners choose what products get made, who gets to make the product, who gets to sell the product, and how much to sell the product for. The government is in control of all the factors of production. Choices are limited. What type of economic systems does your society have?
traditional
command
market
You live in a society whose economic system is based on the concept that anybody can make money (with little to no governmental interference). People are free to open up any business that they want to (within reason). It is based on the concepts like the law of supply, the law of demand, and competition. What type of economic systems does your society have?
traditional
command
market
An industry that deals with the manufacturing of goods. Turning raw materials into a finished product for sale.
primary industry
secondary industry
tertiary industry
quaternary industry
An industry that deals with accumulating of information and data.
primary industry
secondary industry
tertiary industry
quaternary industry
An industry that deals with raw materials. Most jobs are agriculturally based.
primary industry
secondary industry
tertiary industry
quaternary industry
An industry that deals with the sale of manufactured items and services to businesses and consumers.
primary industry
secondary industry
tertiary industry
quaternary industry
Which examples are considered characteristics of a free-enterprise economy?
Individuals are free to operate businesses with little governmental interference.
People are able to make a profit for themselves once their expenses have been paid.
Central planners make long term plans about the production, price, and distribution of goods.
Central planners control limited industries that are key to a nation's well being (utilities, telecommunications, and healthcare).
Individuals control all the factors of production.
What is a country's Gross Domestic Product (G.D.P.)
A country's level of industrial development.
A country's level of health care and education.
The measure of literacy and life expectancy in a particular country.
The value of all goods and services produced withing a country for a year.
How can customers feel certain that their money stored in U.S. banks is safe?
Money deposits are insured.
Many banks have armed guards.
Most banks have good security systems.
It is difficult to steal money from banks.
Which examples best describe a Developing country?
low Gross Domestic Product (G.D.P.)
high levels of technology
low literacy rate
high life expectancy
most jobs are agriculturally based
Which examples best describe a Developed country?
low Gross Domestic Product (G.D.P.)
high levels of technology
low literacy rate
high life expectancy
most jobs in service industries
The process in which countries are increasingly liked to each other through culture and trade is known as...
multinational corporations
globalization
investments
trade barrier
Which of the following examples are ways countries can limit trade between nations and protect their own economic interests?
tariffs
quotas
globalization
telecommunications
embargoes
Which of the examples explain the functions of money?
money serves as a medium of exchange
money serves as a store of value
money serves as a sign of a country's overall growth
money serves as indicator of low literacy rates
money serves as a unit of account
Developing counties want multinational corporations to build factories in their counties to help create jobs for their citizens (thus increasing personal wealth).
True
False
Countries with limited resources will specialize in producing only one type of product. This is known as specialization.
True
False
