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Unit 4 - Economics RETEST

Total questions: 20

Worksheet time: 40mins

Name
Class
Date
1.

What is a benefit (good thing) of the free enterprise system in the United States?

a)

Fewer choices of products available, so consumers are unhappy.

b)

Ownership of private property is allowed.

c)

The government regulates the production of goods and there are many shortages.

d)

A government committee decides the distribution of goods so not everyone gets to buy things.

2.

Which economic system is found in both the United States and Canada?

a)

Market

b)

Command

c)

Trade

d)

Socialist

3.

Which characteristic is most associated with developed economies (high HDI)?

a)

low literacy rates

b)

high amounts of air pollution

c)

low life expectancy

d)

high per capita GDP (per capita income)

4.

Use the graph to answer the question.

Based on the graph, which nation most likely has the highest gross domestic product (GDP) per capita?

a)

Guinea

b)

Zambia

c)

Cambodia

d)

Australia

5.

Which term or terms best completes the analogy, below?

 

Private ownership of goods and services : capitalism  :: Government ownership of goods and services :  ??

 

READ THIS AS -  "Private ownership of goods and services IS TO captialism AS  government ownership of goods and services IS TO  __??___"

a)

Free enterprise

b)

Communism

c)

North and South Korea

d)

Natural Resources

6.

A nation with a high per capita GDP most likely has...

a)

A large rural population working as farmers.

b)

A highly developed economy (tertiary plus+).

c)

A small number of manufacturing or service businesses.

d)

Very few financial institutions (like banks).

7.

-Literacy

-Life Expectancy

-Gross Domestic Product per Capita

What is the BEST title for the list above?

a)

Types of Governments

b)

Roles of citizens in a democracy

c)

Indicators of Economic Development (HDI)

d)

Problems of a Command Economy

8.

Which of the following statements MOST accurately uses the term "entrepreneur"?

a)

An entrepreneur lends money to investors.

b)

An entrepreneur takes on the risks of starting a new business.

c)

An entrepreneur determines the demand for his/her product.

d)

An entrepreneur creates sales tax rates.

9.

Which of these occupations would you most likely find in a traditional economic system?

a)

Airline pilot

b)

Banker

c)

Farmer

d)

Scientist

10.

What effect would a shortage (not enough) of entrepreneurs likely have on the United States?

a)

More jobs would be created

b)

Fewer businesses would be started

c)

Sales taxes would be eliminated (removed)

d)

Literacy rates would go up

11.

Which sector of economic activity involves harvesting resources and raw materials from nature?

a)

Primary Sector

b)

Secondary Level

c)

Tertiary Level

d)

Quaternary Level

12.

In which type of economic activity does about 80% of the U.S. labor force work?

a)

Agriculture

b)

Secondary level jobs

c)

Service jobs

d)

High-tech research

13.

In an economy, there are unlimited wants and needs, but limited resources. This causes societies to make choices about how to use their resources. What do we call the idea of limited resources but unlimited needs?

a)

Capitalism

b)

Scarcity

c)

Production

d)

Manufacturing

14.

Three of these terms are used to describe the same kind of economic system.  Which term does not describe a system of private property ownership, competition, and supply and demand affecting prices for consumers?

a)

Market economy

b)

Capitalism

c)

Free Enterprise

d)

Command Economy

15.

What do we call the activity of raising food crops and livestock?

a)

Agriculture

b)

Manufacturing

c)

Supply and Demand

d)

Labor

16.

Which of these jobs would be in the secondary economic sector?

a)

Cattle ranching

b)

NASA astronaut

c)

Automobile factory worker

d)

Hair stylist

17.

What level of economic activity would a hair stylist be in?

a)

Primary Sector

b)

Secondary Sector

c)

Tertiary (Service) Sector

18.

What term describes roads, electrical grids, water & sewage systems, communication networks, etc. that are necessary to help a business succeed?

a)

Scarcity

b)

Entrepreneurship

c)

Infrastructure

d)

Land/Resources

19.

Which factor of production describes the workers and the skills or training they have in order to do certain jobs?

a)

Capital

b)

Labor

c)

Manufacturing

d)

Infrastructure

20.

Which word is most associated with the SECONDARY level of economic activity?

a)

Agriculture

b)

Manufacturing

c)

Scarcity

d)

Free Enterprise