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Worksheets

Test 1 Review

Total questions: 26

Worksheet time: 14mins

Name
Class
Date
1.

Who makes economic decisions in a mixed economy?

a)

Buyers

b)

The government and individuals

c)

Buyers & Sellers

d)

Sellers

2.

Who makes economic decisions in command economy?

a)

Buyers and sellers

b)

Buyers

c)

The government

d)

The government and individuals

3.

Who makes economic decisions in a market economy?

a)

Buyers and Sellers

b)

Buyers

c)

The Government

d)

Both the Government and Individuals

4.

What type of resource are factory workers?

a)

Labor Resource

b)

Land Resource

c)

Capital Resource

d)

Natural Resource

5.

Cuba, North Korea, and Viet Nam primarily use what economic system?

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

6.

Producers are

a)

People Who Make Stuff

b)

People Who Buy Stuff

c)

People Who Consume Stuff

d)

People Who Provide Services

7.

David is going to McDonald's to buy a Big Mac and french fries. In economic terms, David is a __________.

a)

Producer

b)

Sucker

c)

Supplier

d)

Consumer

8.

What is economics?

a)

The study of how people deal with scarcity

b)

The study of how governments work

c)

The study of nature

d)

The study of why we exist

9.

Nike and Converse are finding that their running shoes are not selling well. What are they most likely to do with respect to supply of running shoes?

a)

Increase Supply

b)

Decrease Supply

c)

Keep Supply Steady

10.

Private property is owned by

a)

The Federal Government

b)

State Governments

c)

Individuals or Groups of People

d)

Opportunity Cost

11.

Yellowstone National Park is controlled by the federal government. Therefore, Yellowstone is considered _____________.

a)

Private Property

b)

Public Property

c)

Standard of Living

d)

GDP

12.

Who answers the 3 Economic Questions in America?

a)

Mostly buyers and sellers, but also the government

b)

Buyers

c)

The Government

d)

Buyers and Sellers

13.

Gross Domestic Product or GDP is

a)

the total dollar value of everything made in a country in a year.

b)

the same as standard of living.

c)

Adam's Smith's primary theory.

d)

citizens' ability to get goods and services that they want.

14.

The desire to earn a surplus is known as

a)

GDP

b)

Profit Motive

c)

Private Property

d)

Invisible Hand

15.

Producers' incentive is generally related to their desire to

a)

build something.

b)

establish quotas.

c)

earn a profit.

d)

provide a service.

16.

In a market economy, who determines prices?

a)

Buyers and Sellers

b)

The Government

c)

Buyers

d)

Kim Kardashian

17.

Raheem was a goat herder in a remote part of Afghanistan. Both his father and grandfather were also goat herders. In what type of economic system would this most likely take place?

a)

Command Economy

b)

Market Economy

c)

Mixed Economy

d)

Traditional Economy

18.

Land or natural resources would include ________________.

a)

wood, oil, and gold.

b)

hammers, drills, and managers.

c)

nature, people, and services.

d)

telephones, computers, and printers.

19.

The difference between a service and a good is _______________________.

a)

you only pay for goods

b)

services are things done for money while goods are things you can hold

c)

goods are things done for money while services are things you can hold

d)

you only pay for services

20.

The fact that we lose satisfaction in something, the more we have of it is known as _____________________.

a)

opportunity cost

b)

invisible hand theory

c)

the law of diminishing marginal utility

d)

scarcity

21.

Another term for factors of production is ____________.

a)

outputs

b)

opportunity costs

c)

resources

d)

GDP

22.

Dalvin buys a new pair of Air Jordan's. If he had not bought the Air Jordan's he would have chosen Chucks. The Chucks represent Dalvin's ______________.

a)

human capital

b)

underutilization

c)

opportunity cost

d)

invisible hand

23.

A person who starts a business to meet a previously unmet need is called a __________________.

a)

CEO

b)

entrepreneur

c)

manager

d)

bureacrat

24.

What term refers to the fact that people always want more than the have the resources to get?

a)

Productivity

b)

Scarcity

c)

Profit

d)

Specialization

25.

Mr. Jones makes $20,000 in a week at his grocery store. After paying his business-related bills, he has $6,000. The $6,000 represents a _______________.

a)

gross revenue

b)

business expense

c)

profit

d)

business income

26.

What type of economics focuses on individuals, businesses, and households?

a)

Voodoo Economics

b)

Home Economics

c)

Macroeconomics

d)

Microeconomics