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WorksheetsEconomics Topic 2 (Part 1) Test
Total questions: 27
Worksheet time: 16mins
Select the three key economic questions
What goods and services should be produced to meet consumer needs?
Why are goods and services produced?
How should these goods and services be produced?
When should goods and services be produced?
Who consumes these goods and services?
"Hoodies are produced." Which key economic question does this example BEST answer?
What goods and services should be produced to meet consumer needs?
How should these goods and services be produced?
Who consumes these goods and services?
Select all of the following that might be a general economic goal of societies.
Efficiency
Equity
Profit
Freedom
Growth
Fill in the blank: A __________ economy only produces enough goods to support its community and does not produce enough surplus to sell and grow.
Command
Centrally Planned
Free-market
Traditional
True or false: Markets are any arrangement that allows buyers and sellers to exchange things.
False
True
Select all that apply: Specialization leads to efficiency by saving people...
Time
Resources
Goods
Services
All of the following are characteristics of a free-market economy except...
It is profit motivated.
There is a lot of government intervention.
The market adapts to various trends.
Competition amongst businesses exist.
True or false: One of the first modern economists, Adam Smith, argued that resources, goods, and services should be distributed equitably or equally amongst the public/people.
True
False
Competition is BEST defined as...
The hope of reward or fear of penalty that encourages a person to behave in a certain way.
The power of consumers to decide what gets produced.
The struggle among consumers for the dollars of producers.
The struggle among producers for the dollars of consumers.
Non-price competition is when producers compete by offering...
an innovative alternative to what is already on the market.
the lowest price for a good that is identical to goods made by others.
higher quality goods or goods with different features.
nothing new to consumers because what they have already works.
What are the two "invisible forces" that are used in the "invisible hand" metaphor that Adam Smith says helps regulates the free-market.
Competition
Self-interest
Incentives
Consumer Sovereignty
Needs
Select all of the following that are advantages of a free market.
Economic Growth
Economic Efficiency
Economic Freedom
Economic Trade
Having a variety of goods to choose from
True or false: A command economy is also known as a centrally planned economy.
True
False
Fill in the blank: The _________ does the planning in a centrally planned economy.
private businesses
general public
rich families
government
A command economy opposes all of the following except...
Private property
Free market pricing
Competition and consumer choice
Government control
Change to processes
True or false: Socialism and communism both believe in the unequal distribution of wealth and centralized economic power.
True
False
Fill in the blank: Karl Marx valued ______ the most.
Growth
Efficiency
Profit
Equity
Select all of the following that are or were at one point communist economies.
Cuba
USSR/Soviet Union
United States
China
Singapore
Which of the following was the most important resource to Karl Marx?
Land
Labor
Capital
Entrepreneur
Select all of the following that are disadvantages of central planning.
Stifled economic efficiency because the government owns all factors of production
Almost non-existent economic freedom resulting from people sacrificing individual freedoms to pursue societal goals
Slow economic growth caused by the governement not rewarding innovation
Lack of economic equity due to favoring government officials and people in favored carers
Select the responses that best answer the question: A mixed economy is made up of elements from which two economies?
Traditional
Command
Free-Market
Socialist
Communist
No economy can be a purely command or free-market economy.
True
False
Select all that apply: Which countries trend toward heavy government involvement?
China
Hong Kong
Taiwan
North Korea
Singapore
Laissez faire is a doctrine that states...
that government generally should intervene in the marketplace.
the government generally should not intervene in the marketplace.
the government generally should help people make profit.
the government generally should not help people make profit.
Governments, like the American government, get involved in the economy to do all of the following EXCEPT...
help businesses profit by giving them beneficial information.
play a role in the economy by protecting property and intellectual rights.
supply some needs in order to achieve the goal of equity.
From the items below, what is something that the government would purchase from households?
An acre of land to build a government building.
Telephones that are unable to be tapped by foreign governments.
Computers from Apple that run on fiber cable internet.
Pens that can be used to write underwater.
From the items below, what would be an item that the government would purchase from firms?
People to work in factories that build tanks.
Computer chips to put into their fighter jets, so they won't lose any more of them.
Private properties from families that will be used for a military base.
College graduates from MIT that are able to write code to protect classified documents.
