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Unit 8 Econ 101 Review

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

Which of the following is NOT a characteristic of a Traditional Economy?

a)

Economic decisions based on custom/historical precedent.

b)

People doing the same work that their parents and grandparents did.

c)

The government telling a farmer what to make

d)

A farmer selling beets because his/her grandparents farmed and sold beets.

2.

__________ is the money that a business owner makes after all expenses have been paid. Example: A shoe sells for $100. The shoe cost $20 to make. The business owner made an $80 _________ from the shoe.

a)

Price

b)

Profit

c)

Sale

d)

Market

3.

The interaction between supply and demand determine ________________.

a)

Sale

b)

Consumer Sovereignty

c)

Command Economy

d)

Prices of goods and services.

4.

The process of combining resources to create goods and services is known as ____________.

a)

Consumption

b)

Production

c)

Creation

d)

Demand

5.

The factors of production are the resources that take a(n) _________ and turn it into a(n) ___________.

a)

idea, good or service

b)

good or service, idea

c)

dog, cat

d)

cat, dog

6.

Workers in a laboratory are considered what type of resource?

a)

Natural

b)

Capital

c)

Human

d)

Entrepreneur

7.

Which of the following is an example of a capital resource?

a)

Oil

b)

Business Owner

c)

Chair

d)

Waitress

8.

Ms. Mitat spent her evening creating a butter sculpture of Mr. Ski instead of reading a book called "How to Teach Kids Good n' Stuff". What was her opportunity cost?

a)

The value of the time she spent making a butter sculpture of Mr. Ski

b)

The value of the time she could have spent reading "How to Teach Kids Good n' Stuff"

c)

The cost of the butter sculpture supplies

d)

The cost of the book "How to Teach Kids Good n' Stuff"

9.

In a ______________ economy, the government controls property and resources and consumers have a severe lack of choice in goods and services.

a)

Traditional

b)

Command

c)

Free Market

d)

Mixed

10.

Each style of Economy answers three basic questions. Choose the THREE questions.

a)

How will it be produced?

b)

What will be produced?

c)

Why will it be produced?

d)

For whom will it be produced?

e)

When will it be produced?

11.

In a ____________ economy consumers, producers, AND the government make decisions about the economy.

a)

Traditional

b)

Command

c)

Free Market

d)

Mixed

12.

Competition benefits consumers by __________ AND ___________. CHOOSE TWO.

a)

Creating better quality products

b)

Creating lower quality products

c)

Keeping prices low

d)

Keeping prices high

13.

In a partnership, the business is owned by ___________ people

a)

two

b)

three

c)

two or more

d)

one

14.

What is supply?

a)

The amount that determines what is purchased

b)

The cost of a good or service

c)

The amount consumers are willing to buy

d)

The amount producers are willing to sell

15.

What is demand?

a)

The amount that determines what is purchased

b)

The cost of a good or service

c)

The amount consumers are willing to buy

d)

The amount producers are willing to sell

16.

In a __________ economy private ownership of property and resources exists. For example, the ice cream shop owner owns the land the shop sits on and the equipment in the shop.

a)

Free Market

b)

Command

c)

Traditional

d)

!CORN!

17.

The __________ sector = Free Market businesses

a)

Private

b)

Public

c)

Consumer

d)

Producer

18.

The __________ sector = the government

a)

Private

b)

Public

c)

Consumer

d)

Producer

19.

What is the name of the person who takes a risk to produce goods and services in hopes of gaining profit

a)

Employee

b)

Capn' Jimjon the Sabertooth Sailor

c)

Entrepreneur

d)

Salesman

20.

What vegetable is yellow, sweet, and has kernels?

a)

Supply

b)

Demand

c)

Oranges

d)

!CORN!

21.

Definition: The inability to satisfy all wants at the same time. Resources and goods are limited, so choices must be made.

a)

Price

b)

Demand

c)

Consumption

d)

Scarcity

22.

Definition: The people who buy goods and services determine, through their purchases, what and how much will be produced.

a)

Consumer Theory

b)

Consumer Sovereignty

c)

Free Market Consumption

d)

Private Competition Theory

23.

When I buy corn, I'm a _____________.

a)

Consumer (Cornsumer)

b)

Producer

c)

Seller

24.

When I make corn, I'm a _____________.

a)

Consumer (Cornsumer)

b)

Producer

c)

Seller

25.

When I offer someone a tour of my cornfield, I am a ___________

a)

Consumer (Cornsumer)

b)

Producer

26.

Corn is a type of _________.

a)

Good

b)

Service

c)

Fruit

27.

A class about corn is a _________.

a)

Good

b)

Service

c)

fruit