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Economy 1

Total questions: 11

Worksheet time: 4mins

Name
Class
Date
1.

What are the three basic questions that every economic system must answer?

a)

What's produced?

b)

How's it produced?

c)

Who sells it?

d)

Who consumes it?

2.

Which economic system allows for the most individual freedom?

a)

Mixed

b)

Market

c)

Command

d)

Traditional

3.

In which economic system does the government have the most control?

a)

Traditional

b)

Command

c)

Mixed

d)

Market

4.

In which economic system do individuals do things based on customs & beliefs?

a)

Command

b)

Market

c)

Mixed

d)

Traditional

5.

What is the economic system of most communist countries?

a)

Command

b)

Traditional

c)

Market

d)

Mixed

6.

Most democratic countries have which type of economic system?

a)

Mixed

b)

Command

c)

Traditional

d)

Market

7.

In a market economy, what most strongly affects the price and quality of goods and services?

a)

tariffs

b)

competition as well as supply and demand

c)

trade barriers

d)

government control

8.

Which country is closest to pure command?

a)

North Korea

b)

United States

c)

United Kingdom

d)

Germany

9.
Of the three major economic questions, which of the following is the best example of a "What?" question? 
a)
Should automobiles be produced using workers or robots? 
b)
Should higher-income or lower-income people buy SUVs?
c)
Should we make faster microprocessors or pest-resistant corn? 
d)
Should migrant workers or domestic workers be used to pick grapes?
10.

Because of scarcity, people are forced to make _________ about how to use resources.

a)

Choices

b)

Opportunities

c)

Analyses

d)

Investments

11.

What name is given to the value of the next best alternative that you give up when you make a decision?

a)

Trade-offs

b)

Opportunity cost

c)

Lost opportunities

d)

Options