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Consumer Ec Unit 1 Test Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

When the government is primarily responsible for the needs of its citizens it is called a

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

d)

Product Economy

2.

The United States can be best described as a

a)

Command Economy

b)

Market Economy

c)

Traditional Economy

d)

Mixed Economy

3.

When consumers are responsible for making their own decisions and making sure their own needs are met it can be best described as a

a)

Command Economy

b)

Market Economy

c)

Traditional Economy

d)

Elephant Economy

4.

On Friday night your family is going to see a movie at 8 pm and your friends are going out to eat at 8 pm as well. You want to do both but obviously can't. You choose going out to eat because you prefer it slightly. Seeing the movie with your family is called your

a)

Opportunity cost

b)

Specialization

c)

Factors of Production

d)

Fixed cost

5.

The problem of scarcity is due to

a)

Resources being unlimited and wants being limited

b)

Resources being limited and wants being limited

c)

Resources being limited and wants being unlimited

d)

Resources being unlimited and wants being unlimited

6.

The factors of production include:

a)

ice cream, cookies, cake, cupcakes

b)

labor, capital, entrepreneurship, economics, scarcity

c)

land, labor, government, tech

d)

land, labor, capital, tech, entrepreneurship

7.

In the US, the Social Security program provides benefits primarily for:

a)

Unemployed people

b)

Retired people

c)

Disabled people

d)

Children

8.

The following are all public goods and services provided by the US government except

a)

Police and fire

b)

Electricity and natural gas

c)

Military

d)

Highways and traffic lights

9.

Local governments make most of their revenue from _____ while the federal government makes most of their revenue from ______

a)

property taxes, business taxes

b)

individuals income taxes, property taxes

c)

property taxes, individuals income taxes

d)

sales taxes, individuals income taxes

10.

Which of the following is a progressive tax?

a)

A

b)

B

c)

C

d)

Q

11.

Which of the following is a regressive tax?

a)

A

b)

B

c)

C

d)

Q

12.

Which of the following is a proportional tax?

a)

A

b)

B

c)

C

d)

Q

13.

The federal government spends a lot on the military, but what does the government spend just as much of their money on? (depending on the year)

a)

National Parks

b)

Social Security and Medicare

c)

Interest on Debt

d)

Cheez-Its

14.

Felix has a savings account that earns him 0.5% per year. He has just realized that inflation was 3% in the past year. Felix is

a)

Happy because his money earned more than inflation went up

b)

Happy because inflation went up at a higher rate than his money

c)

Mad because his money earned more than inflation went up

d)

Mad because inflation went up at a higher rate than his money did

15.

A _____ is when a company does not have enough product to fulfill all of the demand

a)

Shortage

b)

Surplus

16.

A _____ is when a company has more product than they have demand for the product.

a)

Shortage

b)

Surplus

17.

Factors that can move the _______ curve include taste/preferences, price of related goods (complements or substitutes), income, number of buyers, and future expectations

a)

Supply

b)

Demand

18.

Factors that can move the _______ curve include change in resource prices, technology, and taxes

a)

Supply

b)

Demand

19.

When the economy is growing too quickly (like it is right now) the government can do what to help stablize?

a)

Reduce govt spending and increase taxes

b)

Increase govt spending and decrease taxes

c)

No change on govt spending and increase taxes

d)

No change on govt spending and decrease taxes

20.

Competition in the economy creates all of the following except

a)

More variety/selection of goods and services

b)

Lower priced goods and services

c)

Lower productivity of labor

d)

Higher quality goods and services