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Econ 11/12 Review

Total questions: 31

Worksheet time: 16mins

Name
Class
Date
1.

Which example defines a traditional economy?

a)

Government is the owners and decision makers of the public sector

b)

Economic decisions are based on custom and historical precedent

c)

Centrally planned economy

d)

Private ownership of property and resources

2.

Which example defines a command economy?

a)

Government is the owners and decision makers of the public sector

b)

Economic decisions are based on custom and historical precedent

c)

Centrally planned economy

d)

Private ownership of property and resources

3.

Which example defines a free market economy?

a)

Government is the owners and decision makers of the public sector

b)

Economic decisions are based on custom and historical precedent

c)

Centrally planned economy

d)

Private ownership of property and resources

4.

Which two factors most directly affect price?

a)

Free and mixed economies

b)

Supply and Demand

c)

Competition and Supply

d)

Consumer Sovereignty and Profit

5.

In the circular flow model, goods/services and resources flow in one direction. What flows in the opposite direction?

a)

Profits

b)

Money

c)

Incentives

d)

Tax Revenue

6.

When Supply is high and Demand is low where will price be?

a)

High

b)

Low

c)

None of the above

d)

It'll stay the same

7.

What are the earnings left after a business has paid all of its expenses?

a)

Capital

b)

Wages

c)

Profit

d)

Taxes

8.

What is consumption?

a)

Making of goods and services

b)

What determines price

c)

What's given up when a choice is made

d)

The use of goods and services

9.

"A form of business organization where one owner takes all the risk and all the profits"

a)

Proprietorship

b)

Partnership

c)

Corporation

d)

Entrepreneurship

10.

"A form of business organization where two owners takes all the risk and split the profits"

a)

Proprietorship

b)

Partnership

c)

Corporation

d)

Entrepreneurship

11.

Which of the following is not a form of business ownership?

a)

Proprietorship

b)

Partnership

c)

Corporation

d)

Foundation

12.

What is supply?

a)

Amount consumers are willing to buy

b)

Amount that determines what is purchased

c)

Amount an item costs

d)

Amount producers are willing to sell

13.

In the United States economic system, who makes decisions?

a)

Businesses only

b)

Individuals, Businesses and Government

c)

Government only

d)

Individuals Only

14.

What you must give up when you choose one thing over another

a)

Price

b)

Opportunity Cost

c)

Supply and Demand

d)

Capital

15.

Rivalry between producers of a good or service that results in lower prices for better quality goods and services is called

a)

Profit

b)

Free Market

c)

Competition

d)

Consumer Sovereignty

16.

Private Financial Institutions help facilitate an exchange of money between...

a)

US Government and other countries

b)

Governments and citizens

c)

Individuals and businesses

d)

Savers and borrowers

17.

Which item is NOT an example of a private financial institution?

a)

Encourage saving and investing by paying interest on deposits

b)

Receive Deposits and make loans

c)

Include banks and credit unions

d)

Provide food stamps

18.

The circular flow chart shows how ______, ______, and markets interact

a)

consumers, businesses

b)

economy, stocks

c)

corporations, partnerships

d)

banks, credit unions

19.

In a free market economy who initially collects the profits each month?

a)

Employees of the company

b)

Leaders of the government

c)

Most valued customers

d)

Owners of the company

20.

Joey wants to buy a car. What do you call the amount of money he will pay for the car?

a)

Price

b)

Supply

c)

Demand

d)

Incentive

21.

Who owns the resources used in production, sells them and then use the income to buy products?

a)

Businesses

b)

Government

c)

Households

22.

Who uses tax revenue from households and businesses to provide public goods and services

a)

Businesses

b)

Government

c)

Households

23.

All of the following are characteristics of a command economy except...

a)

Competiiton

b)

Centrally planned

c)

No consumer choice

d)

Government ownership of resources

24.

I want to buy a video game and see two movies but I don't have the money for both. What is the opportunity cost of going to the movies?

a)

Price of the movie tickets

b)

Time buying the computer game

c)

Enjoyment of seeing the movie

d)

Value of the computer game

25.

A person who takes the risk to produce goods and services in search of profit is called

a)

Chief Financial Officer (CFO)

b)

Law enforcement

c)

Entrepreneur

d)

Colleague

26.

Which of the following is NOT a reason why states and nations trade?

a)

To create jobs

b)

To obtain goods and services they can't produce themselves

c)

To protect domestic industries

d)

To sell goods and services to other countries

e)

To lower cost and opportunity cost

27.

If John and Maria both open shoe stores in the same town. What benefits should the citizens of that town see economically as a result of these businesses competing?

a)

Lower Quality and Higher Prices

b)

Higher Quality and Higher Prices

c)

Higher Quality and Lower Prices

d)

Lower Quality and Lower Prices

28.

Trees are an example of what type of resource

a)

Natural

b)

Capital

c)

Human

d)

Entrepreneurial

29.

Virginia and the United States pursue international trade in order to...

a)

Incentives

b)

Competition

c)

Profits

d)

Wealth

30.

Worldwide markets in which the buying and selling of goods and services by all nations takes place is called...

a)

Global economy

b)

World Wide Mall

c)

Global Financial Guide

d)

Global Market Agreement

31.

What is demand?

a)

Amount of the incentive

b)

Amount of goods and services people are willing to buy

c)

Amount producers are willing to sell

d)

Amount an item cost