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Economics Unit 1

Total questions: 20

Worksheet time: 17mins

Name
Class
Date
1.

What type of economic system did Adam Smith support?

a)

a free market system

b)

mixed economic system

c)

planned economic system

2.

A philosophy that calls for very little or no government involvement in the economy.

a)

Industrial Capitalist

b)

Economics

c)

Supply and Demand

d)

Laissez-Faire

3.

Adam Smith’s Wealth of Nations stressed the importance of

a)

tradition

b)

supply and demand

c)

large corporations

d)

government ownership

4.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

5.

Labor refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

6.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

The "gifts of nature" or natural resources not created by human effort.

d)

the tools, equipment, and factories used in production of goods and services

7.

A herd of cattle is an example of ...

a)

Land

b)

Labor

c)

Entrepreneur

d)

Capital

8.

A bulldozer is an example of...

a)

Labor

b)

Land

c)

Entrepreneur

d)

Capital

9.

A product or service is scarce when ...

a)

The amount available can satisfy the demands of society

b)

Its price far exceeds the value of the item.

c)

The amount available is not enough to meet the demands of society

d)

One company is responsible for producing the product.

10.

The definition of Scarcity is...

a)

An unlimited amount of resources to meet limited wants and needs

b)

a city where individuals commit themselves to unlimited wants and needs

c)

A limited amount of resources to meet unlimited wants and needs.

d)

When people use time and energy to create events

11.
The opportunity cost of increasing production from 7 to 9 trucks is
a)
Scarcity
b)
2 boats
c)
2 trucks
d)
3 boats
12.
What is the production possibilities curve?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
13.
What is the fundamental problem of every society?
a)
labor costs
b)
scarcity
c)
economic interdependence
d)
market fluctuation
14.
What is opportunity cost?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
15.
Land, Labor, Capital, and Entrepreneurship 
a)
Diversification
b)
Deductions
c)
Portfolio
d)
Factors of Production 
16.

Which economic system does the government make all economic decisions and owns most of the property - it is sometimes called communism?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

17.

Which economic system are all resources privately owned and the buyers and sellers answer the three economic questions?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

18.

Which of the following economic systems allows citizens full freedom in choosing a career and workplace?

a)

Capitalism

b)

Fascism

c)

Socialism

d)

Communism

19.

Government owns all major industries, but private property exists as well 

a)

Traditional

b)

Captialism

c)

Socialism

d)

Communism

20.

No private property

a)

Traditional

b)

Captialism

c)

Socialism

d)

Communism