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WorksheetsECON Chapter 2A Quiz
Total questions: 100
Worksheet time: 1hrs 18mins
Why does even a free market economy need some government intervention?
to provide for things that the marketplace does not address
to ensure that the government has the freedom to tax as necessary
to make sure that the government can fulfill its needs for military personnel
so that the government has some control over factor resources
Which of the following is NOT a key economic question?
What goods and services should be produced?
How should these goods and services be produced?
Who consumes these goods and services?
How should it be ensured that goods and services are paid for?
. What does the process of specialization do for an economy?
It eliminates unemployment.
It makes it more efficient
It fosters competition.
It makes it easier to control.
What incentive motivates a manufacturer to sell a product?
making profits on sales
putting others out of business
pleasing the consumer
popularity of the product
Which of the following was a free market philosopher?
Karl Marx
Adam Smith
Vladimir Lenin
Friedrich Engels
Which of the following is characteristic of a traditional economy?
Communities tend to be fast-growing.
They are usually based on light industrial production.
They have a high standard of living.
Children tend to have the same jobs as their parents did.
What incentive do manufacturers have to sell their products?
making profits on sales
pleasing the consumer
putting others out of business
popularity of the product
In what kind of an economy does the government make all the decisions?
socialist
laissez faire
centrally planned
free enterprise
What is the function of an economic system?
to make sure all people have equal access to goods
to produce and distribute goods and services
to give all producers the same access to consumers
to make sure people are paid for their labor
Which of the following is a condition that most people would NOT expect the safety net of the government to provide for?
injuries
joblessness
natural disasters
low income
Who was the leader that introduced communism and central planning to the former Soviet Union?
Karl Marx
Joseph Stalin
Vladimir Lenin
Friedrich Engels
What might be a hardship for citizens of a centrally planned economy making a transition to a market-based system ?
Farmers would have to grow the crops that the government instructed them to.
Only poor quality goods would be available to consumers, because manufacturers focused on quantity, not quality.
Workers would lose job security and guaranteed incomes
Entrepreneurs would have fewer opportunities to start new businesses
Households pay firms for goods and services. Firms supply households with goods and services. The purchase and supply of goods and services takes place in the
product market.
factor market
after market
traditional market
Which of the following goals is difficult to achieve in a pure free market system?
economic efficiency
economic equity
economic freedom
economic growth
A government prints and distributes posters to inspire workers to increase their productivity. In which kind of economy does this most likely take place?
weak economy
traditional economy
market economy
centrally planned economy
A person believes that real equality can only exist when political equality is coupled with economic equality.
This person believes that democratic means should be used to distribute wealth evenly throughout society. This person is a
socialist.
communist.
capitalist.
authoritarian.
Which of the following is NOT a weakness of centrally planned economies?
Most workers lack job security.
Consumers' needs are generally not met.
Workers lack incentives to be innovative.
Individual freedoms are sacrificed for societal goals.
The economy of China is in transition. What does this mean?
Investments are determined by state control instead of by private decision.
The economy is moving from central planning toward a market-based system.
Individual firms are in the process of being sold to the state.
The government rarely interferes in the free market and is highly receptive to foreign investment
In which of the following lists of mixed economies does the market system dominate?
France, Canada, South Africa, United Kingdom
United States, United Kingdom, Singapore, Hong Kong
Cuba, Greece, China, United States
Russia, Peru, France, Canada
Which of the following is a condition that most people would NOT expect the safety net of the government to provide for?
injuries
joblessness
natural disasters
low income
Explain what has happened to most of the large centrally planned economies. Why has this has happened?
How does the government participate in a mixed economy?
Explain why a completely free market economy would not be a practical one for any major country.
What are some, of the economic goals most economies try to achieve?
In what kind of economic system does the government make all the decisions?
Traditional
Centrally Planned
Market
Laissez Faire
What is the struggle among various producers for the consumer's business called?
Socialism
Competition
Incentive
Self-Regulation
What does the process of specialization do for an economy?
It eliminates unemployment.
It makes it more efficient
If fosters competition
It makes it easier to control
Adam Smith came up with the idea of:
Command/Control Economic System
Invisible Hand
Environmental Protection
Socialism
A level of economic prosperity is
Standard of Living
Economic System
Incentive
Safety Nets
Government programs that protect people from experiencing unfavorable economic conditions is:
Standard of Living
Economic Systems
Incentive
Safety Nets
The Chinese economy is
a free market
a centrally planned
mixed - but on the side of free market
mixed - but on the side of centrally planned
Of the countries listed below, which one is still Communistic?
North Korea
South Korea
Iraq
Canada
What is an advantage of a Traditional Economic System?
It can change direction drastically in a short time.
Everyone has a role and life is stable, predictable and continuous.
Economic goals of Efficiency, Growth, Freedom, and Sovereignty are met.
Rewards only profitable resources
What is the difference between a Socialist society and Communist society?
Communist countries only have dictators
Socialistic countries only have dictators
Communism believes that a socialistic society can only come from a violent revolution
Socialism believes that a traditional economic system can easily become Communistic with the right leadership.
The US strives to meet all five of the basic Economic Goals. It also tries to reach other Economic Goals that other countries cannot meet. An example of an additional Economic Goal is:
Environmental Protection
Price Stability
Full Employment
All of the above
What is the function of an economic system?
To make sure all people have equal access to goods
To produce and distribute goods and services
To give all producers the same access to consumers
To make sure people are paid for their labor
What is the purpose of competition?
To act as a regulating force in the marketplace
To cause producers to attempt to put each other out of business
To cause buyers to have to be careful about spending their money
To act as a motivating force behind the free market.
Which of the following is NOT a key economic question?
What goods and services should be produced?
How should these goods and services be produced?
Who consumes these goods and services?
How should the goods and services be paid for?
Who came up with the idea of a "Free Market"
Karl Marx
Vladimir Lenin
Alexander Hamilton
Adam Smith
Which of the following is a characteristic of a traditional economic system?
Communities tend to be fast growing
They are usually based on light production
They have a high standard of living
Children tend to have the same jobs as their parents did
You are an entrepreneur with an innovative idea for a new business. In which kind of economy would you have the most opportunity to try to achieve success?
Market
Command
Traditional
Control
Why is the idea of communism so appealing to many people/countries?
There is no central leader, only local leaders to give directions
Everyone can live where they want
Everyone can buy what they want and need
Everyone is supposedly equal
What is Laissez Faire?
No government involvement in people's lives - hands off
No government involvement in business/economy - hands off
Government involvement in all aspects of people's lives - hands on
Government involved in religion
What is an advantage of a Command/Control Economic System?
Can change direction drastically in a short time
Everyone has a role and life is stable, predictable and continuous
Economic goals of Efficiency, Growth, Freedom and Sovereignty are met
Rewards only profitable resources
What is an advantage of a Market Economic System?
Can change direction drastically in a short time
Everyone has a role and life is stable, predictable and continuous
Economic goals of Efficiency, Growth, Freedom and Sovereignty and met
Rewards only profitable resources
What is a disadvantage of a Traditional Economic System?
Low standard of living
Rewards only profitable resources
No flexibility
Entrepreneurs are encouraged
What is a disadvantage of a Command/Control Economic System?
Low standard of living
Rewards only profitable resources
No flexibility - Does not meet the needs and wants of its people
Entrepreneurs are encouraged
What is a disadvantage of a Market Economic System?
Low standard of living
Rewards only profitable resources
No flexibility
Can't handle environmental disasters
An expectation that encourages people to behave in a certain way
Standard of living
Economic System
Incentive
Safety Net
What are the 5 economic goals?
Growth
Efficiency
Certainty
Simplicity
Freedom
Certainty
Simplicity
Equity
Efficiency
Equity
Security
Freedom
Growth
Efficiency
Certainty
Simplicity
Security
Growth
Efficiency
Match the economic systems to its characteristics or meaning.
Command economy
Centrally owned by the government
Mixed economy
Public and private sectors
Traditional economy
Customs, family, and historical basis
Free Market
Private sector, profit, and minimal gov.
Match the economic systems to its characteristics or meaning.
Command economy
Centrally owned by the government
Mixed economy
Public and private sectors
Free Market
Private sector, profit, and minimal gov.
(a) are characterized by stable governments, good economic conditions and basic support for citizens.
The socialist country (a) has the government run their businesses and does not believe in private property.
Jane wants to be a scientists, but her family have always been farmers, so she becomes a farmer
Traditional
Captialism
Socialism
Communism
Most modern economies today are ______ economies.
market
traditional
command
mixed
Economic equity is the ________ with which an economy distributes its resources and wealth.
traditions
fairness
unfairness
all of these
Economies try to answer these fundamental economic questions:
What goods and services are to be produced?
How are goods and services to be produced?
For whom are goods and services to be produced?
all of these
In a ___________ economy, decisions about production and consumption are made by the government.
market
mixed
command
free enterprise system
_____________ equity involves the fair and just distribution of society's wealth?
Economic
Educational
Scholastic
Societal
A _________ economy is an economic system in which economic decisions are left up to individual producers and consumers.
Mixed
Command
Traditional
Market
An economic system in which both the government and individuals play important roles in production and consumption is a ____________ economy.
mixed
market
command
traditional
Economic _____________ is the ability to make our own economic decisions without interference from the government.
freedom
constraint
opportunites
dead end
The highest goals of a market economy are economic freedom and ___________.
efficiency
inefficiency
instability
all of these
The United States is an example of which type of economic system?
Command economy
Traditional economy
Free market economy
Mixed economy
In a free market economy, who owns the factors of production?
The government
Individuals and privately owned businesses
Large corporations
Foreign firms
Who owns the factors of production in a command economy?
Individuals and privately owned businesses
Large corporations
The government
Foreign firms
Innovation plays a large role in advancing an economy toward which economic goal?
Economic Security
Economic Equity
Economic Freedom
Economic Growth
One way in which government protects business property is to provide
Federal Reserve Banks.
Local governmental programs.
Patents or copyrights.
Fire insurance policies.
Why does government set and collect taxes?
To increase the use of technology
To help pay the expenses of government
To provide economic security
To help businesses grow and prosper
Which of the following is a public good that is provided by government:
Private schools
Marketing research
New automobiles
Interstate highways
Government tries to protect competition by
Controlling the prices of products.
Restricting the production of certain products.
Regulating monopolies.
Setting the minimum wage
Which economic system does the goals of freedom, growth, efficiency, and sustainability belong to?
Market
Command
Which economic system does the goals of equity, security, full employment, and stability belong to?
Market
Command
