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Worksheets8-1 "What are Economies" Test Review
Total questions: 78
Worksheet time: 40mins
True or False - To obtain the things you want and need, you use both natural and human resources.
(a)
Which of the following are all factors of production?
land, labor, and gross domestic product
labor, service industries, and capital
land, labor, and capital
capital, service industries, and labor
In which type of economy are all the means of production privately owned?
traditional economy
command economy
mixed economy
market economy
In which type of economic system are resources distributed mainly through families?
traditional economy
market economy
command economy
mixed economy
A _____ is also referred to as capitalism.
traditional economy
market economy
command economy
mixed economy
In which type of economy are the production and distribution of resources controlled by the government?
traditional economy
market economy
command economy
mixed economy
What type of economic system does the United States have?
traditional economy
market economy
command economy
mixed economy
True or False: The United States has a command economy
(a)
What is a characteristic of a market economy?
lack of choice
some individual choice
competition
central ownership of property
Which type of economy involves trading, and doesn't usually use money?
Command
Traditional
Market
Mixed
Individuals own all resources and determine what and how to produce without outside interference.
traditional
command
market
mixed
Individuals own most factors of production and determine what and how to produce with some regulation.
traditional
command
market
mixed
The government regulates certain industries, but not all.
traditional
command
market
mixed
What type of economy does the United States have?
Traditional
Command
Market
Mixed
Which type of economy is run by the businesses & business owners?
Command
Mixed
Communist
Market
Match each term with its description
Land
Natural resources & raw materials used to make products
Factors of Production
the basic economic resources needed to produce goods and services
Labor
Jobs or workers
Capital
Money & manmade objects used to make products or perform services
Entrepreneur
A person who risks starting a business to earn a profit
The tools and machines used to produce a good or services are called (a)
Which factor of production would a factory worker be?
Land
Labor
Capital
Entrepreneur
What factor of production would a college professor be?
Land
Labor
Capital
Entrepreneur
What factor of production would a library building be?
Land
Labor
Capital
Entrepreneur
What factor of production would a business owner be?
Land
Labor
Capital
Entrepreneur
What factor of production would sugar cane be?
Land
Labor
Capital
Entrepreneur
A company that purchases new computers is investing in which factor of production?
Land
Labor
Capital
Entrepreneur
Which of the following accurately lists the factors of production used in the situation below?
A teenager working at a sandwich shop uses a meat slicer.
Labor and Entrepreneurship
Labor and Capital
Entrepreneurship and Land
Land and Capital
Which of the following accurately lists the factors of production used in the situation below?
A factory owner deciding whether to expand the physical size of a factory.
A laborer making a decision about land
An entrepreneur making a decision about capital
a laborer making a decision about entrepreneurship
an entrepreneur making a decision about labor
The (a) invests money into machines known as (b) and hires workers known as (c) to bring the raw materials known as (d) together to produce goods and services
What factor of production would the cashiers at McDonalds be?
Natural Resources
Labor
Entrepreneurs
Capital
Bill Gates is an example of which factor of production?
Natural Resources
Labor
Entrepreneur
Capital
What factor of production would your Chromebook be?
Natural Resources
Labor
Entrepreneurs
Capital
What factor of production would a steel factory be?
Natural Resources
Labor
Entrepreneurs
Capital
What factor of production would a sanitation worker be?
Natural Resources
Labor
Entrepreneurs
Capital
What factor of production would a bulldozer be?
Natural Resources
Labor
Entrepreneurs
Capital
What factor of production would a forest be?
Natural Resources
Labor
Entrepreneurs
Capital
What factor of production would a herd of cattle be?
Natural Resources
Labor
Entrepreneur
Capital
What are the two types of capital?
Capital Goods
Financial Capital
National Capital
Entrepreneur Capital
Natural Resources
Match the following terms with the correct description
Industry
All types of business that are related to the same good or service
Primary Industry
Businesses that gather raw materials & natural resources from the earth
Secondary Industry
Businesses that use natural resources & raw materials to make new products
Tertiary (Service) Industry
Businesses that provide help & services directly to the public
Which type of economic activity provides services to people and businesses?
Primary Industry
Secondary Industry
Tertiary Industry
Dairy cattle, wheat production, and forestry are examples of which type of economic activity?
Primary Industry
Secondary Industry
Tertiary Industry
Which type of economic activity uses raw materials to produce or manufacture something else?
Primary Industry
Secondary Industry
Tertiary Industry
Which of the following is NOT an example of secondary industry?
Making ice cream from cow's milk
Making flour from wheat
Making furniture from trees
Taking oil out of the ground
Which of the areas of industry is a lumberjack?
Primary Industry
Secondary Industry
Tertiary Industry
Which of the areas of industry is a waitress?
Primary Industry
Secondary Industry
Tertiary Industry
Which of the areas of industry is a bank teller?
Primary Industry
Secondary Industry
Tertiary Industry
Which of the areas of industry is a teacher?
Primary Industry
Secondary Industry
Tertiary Industry
Businesses that operate in the tertiary sector provide:
Social services
Natural resources
Manufactured products
Services
Another term for the tertiary sector is:
Primary Industry
Public Industry
Private Industry
Service Industry
Which type of industry makes goods and products (manufacturing)?
Primary Industry
Secondary Industry
Tertiary Industry
The Nissan car factory is an example of which kind of industry?
Primary Industry
Secondary Industry
Tertiary Industry
Which statement best characterizes opportunity cost?
The amount of a good that businesses are able to produce
The amount of money left over after expenses have been paid
The value of a product that you give up in a tradeoff with another product
The number of people who are ready to buy a product at a certain price
How are natural resources, labor, capital, and entrepreneurs related?
Their demand is limited.
Their supply is unlimited.
Their supply is limited.
Their demand is unlimited.
Which of the following is NOT a factor of production?
land and natural resources
labor
capital
scarcity
Suppose a farmer uses skills and tools to grow strawberries on a farm, and she sells them at a market. A drought destroys the farmland which results in fewer crops. Consumers have to buy strawberries at a higher price. This situation would cause
contraction
expansion
profit
opportunity cost
system of producing, selling, and buying goods and services
scarcity
economy
profit
opportunity cost
The money an individual or business has left after paying expenses is called
capital
scarcity
profit
factors of production
Nations that rely on trade with one another for supplies of scarce resources experience
expansion
scarcity
economic interdependence
supply and demand
When a factor of production is increased, the result can be a(n) _____ of the business.
contraction
expansion
downfall
profit
The price of a good or service is usually determined by the laws of supply and demand.
True
False
Based on this graph, what happens to the demand for a product when the price increases?
The demand stays the same.
The demand decreases.
The demand increases.
There is no demand.
Your club is selling chocolate for a fundraiser. What is the term given to the amount of money that your customers pay minus the cost that your club actually paid for the chocolate.
supply
opportunity cost
profit
factor of production
Which factor of production is being described: The oceans, mines, forests, etc. that provide raw materials needed to product goods.
Capital
Labor
Land
Entrepreneurs
Which factor of production is being described: The person who organizes, manages, and assumes the risk of business.
Capital
Labor
Land
Entrepreneurs
Which factor of production is being described: The goods, used to make other goods and services.
Labor
Capital
Entrepreneurs
Land
Which factor of production is being described: The human time, effort, skills, and talent needed to produce goods and services.
Capital
Land
Entrepreneurs
Labor
