WorksheetsUnit 5: Economic Systems Test Review
Total questions: 38
Worksheet time: 26mins
Which TWO activities are characteristics of a traditional economic systems? (SELECT TWO ANSWERS)
Dependency on currency
Subsistence Farming
Cottage Industries
Commercial Farming
What is another name for a Free Market Economy? (SELECT ALL THAT APPLY)
Communism
Socialism
Capitalism
Free Enterprise
What is a Free Market Economy?
An economic system in which subsistence farming and bartering are the main economic activity.
An economic system where the government owns and controls the factors of production.
An economic system where people own and control the factors of production and where government has minimal interference.
An economic system where the government owns the major industries and promotes extreme social programs.
Who owns the means of production in a Free Market Economy?
The government
The people
The tribe leaders
The church
What are the goals in a free market economy? (SELECT 3 CORRECT ANSWERS)
Private Ownership
Make Profits
Promote business competition
Government control
Equal ownership of industries
A global economic system where the economic activities depend on goods being shipped worldwide, companies outsourcing and offshoring to cheaper labor regions, and the promotion of products and price competition worldwide.
Globalization
Commercial Agriculture
Cottage Industries
Free Trade Agreements
How do free trade zones promote economic growth?
Free trade zones promote economic growth by limiting foreign investment.
Free trade zones promote economic growth by reducing international trade barriers such as tariffs.
Free trade zones promote economic growth by increasing tariffs on imported goods.
Free trade zones promote economic growth by restricting international trade.
What is one advantage of outsourcing? (SELECT ALL THAT APPLY)
Promote innovation in home country.
Cut labor costs.
Increase the employment rate in home country.
Increased access to specialized skills abroad.
The term used when there is not enough of something to go around is __________________.
scarcity
economic choices
resources
opportunity cost
Which is NOT a question all economies have to answer?
When will products be produced?
How will products be produced?
What products will be produced?
Who gets access to the products?
Demanding
Bartering
Buying
Selling
(a) is when people make goods at home or in small workshops, usually by hand and (b) is when goods are mass produced in large factories.
the farming practice where farmers produce just enough crops or food to feed one's family, most common in a traditional economy.
Commercial Agriculture
Subsistence Agriculture
Cottage Industry
5 Year Plan
the farming practice where farmers mass produce large quantities (surplus) of crops or food for a larger market; most common in developed economies that have large farms and markets, along with advances equipment
Commercial Agriculture
Subsistence Agriculture
Cottage Industry
5 Year Plan
An economic plan where the government sets the economic goals and activities; most common in a command economy
Law of Supply and Demand
Outsourcing
Cottage Industry
5 Year Plan
In this type of economy, activities are based on traditions and customs, dependent on subsistence agriculture and cottage industries, and goods and services are exchanges by bartering (trading).
Free Market
Socialist
In this type of economy, activities are based on a governments 5-year plan, the government controls all factors of production, and the goal is to create a classless society (everyone is equal).
Socialist
In this type of economy, the government controls major industries like healthcare, energy, education, while also providing social services like free healthcare, education, and other welfare services at the expense of higher taxes, and allowing people to own small businesses.
Traditional
Free Market
Socialist
Command
In this type of economy, the producers and consumers are in control of the economic factors based on the law of supply and demand, and the goals of this system include promoting private ownership, encourage business competition and to make a profits.
Traditional
Free Market
Socialist
Command
In a command (communist) economy, people have a choice in the work they do and wages they receive?
True
False
Who owns the mean of production in a command (communist) economy?
The people
The government
The workers
The poor
Currency is _________.
The money used in a country.
The crops produced in a country.
The factories that run the economy of a country.
The trade markets in a country.
The Mexican peso, U.S. dollar, and the Chinese Yuan are all example of --
Currency
Surplus
Profit
Scarcity
Match the alternate names to the economic systems.
Free Market Economy
Capitalism
Socialist Economy
Socialism
Command Economy
Communism
Select the countries that have free market economies?
United States
New Zealand
China
Japan
North Korea
Select the countries that have socialist economies?
Sweden
Iran
Vietnam
Denmark
North Korea
Select the countries that have communist economies?
Sweden
Iran
Vietnam
Denmark
North Korea
How does modern farming equipment and commercial farms affect production?
The production of crops is greater, and it can be done by less people.
Modern farming equipment causes crops to die faster due to pollutants.
The production of crops is lesser, and it demands more people to run the machines.
It has no effect on the production of crops.
The expansion of American fast-food restaurants across the world is an example of
cottage industries
Why do countries create free trade zones/agreements?
To create less restrictions on trade with the hopes of grow their economies.
To apply more restrictions on trade, giving countries less control of their economy.
To have more influence and dominance over the other countries if they start a trade war.
To form and alliance against other countries in case of a global nuclear war.
Why do many people from Latin America, such as people from Cuba, Venezuela, and Mexico, immigrate to the United States? (SELECT ALL THAT APPLY)
Because of better job opportunities
Because of higher wages (pay)
Because of the strict control of government in the U.S.
Because of the traditional economic activities that dominates the U.S.
The practice of sending jobs to other countries or hiring foreign workers and companies to cut labor costs is an example of --
Outsourcing
Surplus
Cottage Industry
5 Year Plan
Subsistence agriculture is more efficient than commercial agriculture.
TRUE
FALSE
Subsistence agriculture produces just enough food to survive.
TRUE
FALSE
Commercial agriculture is more efficient and produces larger quantities of food than subsistence agriculture.
TRUE
FALSE
Where does a SOCIALIST economy fall on the economic spectrum?
Where does a COMMAND economy fall on the economic spectrum?
Where does a FREE MARKET economy fall on the economic spectrum?
