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Capitalism

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Invisible hands is

a)

the name of Adam Smith's Book

b)

invisible forces that move the economy

c)

the government force over the market

2.

Which is a fundamental idea of laissez-faire capitalism

a)

Workers should own the means of production

b)

Businesses should gain and lose according to their own effort

c)

Government should control output and wages

3.

A sale on winter coats in June is an example of _____ supply, _______ demand.

a)

High, low

b)

Low, high

4.

A present-day example of laissez-faire economics would be

a)

minimun wage laws

b)

farm subsidies

c)

deregulation of the airline industry

5.

Capitalism

a)

global trading of people, goods, technology, ideas and disease

b)

economic system in which money is invested in businesses to make profit

c)

settlement of people living in a new territory controlled by their home country

6.

Who came up with the idea of capitalism in their book, The Wealth of Nations?

a)

Charles Marx

b)

Adam Smith

c)

Donald Trump

7.

"The bigger the market, the more we specialize, the more we can produce"

a)

Division of labor

b)

Invisible hands

c)

Labor market

8.

Who makes the decisions in a capitalist economy?

a)

The People or Citizens (You and Me)

b)

The Government

9.

The Book "The Wealth of Nations" provides the basic theory of

a)

Socialism

b)

Communism

c)

Capitalism

10.

Capitalism characteristics are............................

(THREE answers)

a)

private property

b)

freedom of choice

c)

collective ownership

d)

competition

e)

Economic, Social and Political Equality

11.

Adam Smith suggested governments should take control of the market.

a)

True

b)

False

12.

Market or supply & demand determines prices in Capitalism

a)

True

b)

Falso

13.

Input is any resource used to create ...

a)

investments and incentives

b)

labor and capital

c)

goods and services

14.

How badly you want, or need something. When you and your friends buy certain brands of shoes or clothes, you create a _______ for it.

a)

Supply

b)

Demand

c)

Capital

d)

Services

15.

Output is _______ of good or services produced

a)

cost

b)

quantity

c)

time

16.

When a business has too much of a product.

a)

Supply

b)

Demand

c)

Profit

d)

Labor

17.

A measure of economic performance that indicates how efficiently inputs are converted into output.

a)

Productivity

b)

Invisible hand

c)

Division of labor

18.

How are prices set in a capitalist economy?

a)

Prices are set by what people buy and sell

b)

Prices are set by the government

19.

Specialization of cooperating individuals who perform specific task and roles.

a)

Production

b)

Industrial revolution

c)

Division of labor

20.

A person who wants to create their own business, or invest in another person's business ideas or inventions

a)

Manager

b)

Entrepreneur

c)

Laborer