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CH 9 Economics Review

Total questions: 19

Worksheet time: 29mins

Name
Class
Date
1.

Interaction of supply and demand determines—

a)

profit

b)

price

c)

competition

d)

choice

2.

What leads to the production of higher quality goods at a lower price?

a)

Scarcity

b)

Incentives

c)

Competition

d)

Production

3.

Consumers determine, through their purchases, the goods and services that are produced. This idea is known as—

a)

consumer sovereignty

b)

entrepreneurship

c)

profit motive

d)

production

4.

Who are the decision makers for the private sector in the U.S. economy?

a)

The government

b)

Businesses and the government

c)

Individuals and the government

d)

Individuals and businesses

5.

What is the inability to satisfy all wants at the same time?

a)

Choice

b)

Scarcity

c)

Opportunity cost

d)

Incentives

6.

Combining human, natural, capital, and entrepreneurial resources to make goods and services is called—

a)

A. consumption

b)

B. resources

c)

C. production

d)

D. distribution

7.

According to the scenario above, in which economy is Anthony operating?

a)

A. Command economy

b)

B. Forced market economy

c)

C. Mixed economy

d)

D. Traditional economy

8.

According to the scenario above, the yard sale down the road is an example of—

a)

A. profit

b)

B. competition

c)

C. opportunity cost

d)

D. an incentive

9.

According to the scenario above, Anthony’s earnings after all expenses have been paid are his—

a)

A. price

b)

B. scarcity

c)

C. profit

d)

D. consumption

10.

What is determined by consumer preference and price?

a)

Production

b)

Consumption

c)

Innovation

d)

Distribution

11.

In which economy do people often perform the same type of work as their parents, regardless of ability or potential?

a)

Mixed economy

b)

Command economy

c)

Free market economy

d)

Traditional economy

12.

How do private financial institutions encourage saving and investing?

a)

By receiving deposits

b)

By paying interest on deposits

c)

By making loans

d)

By providing start-up capital

13.

All of the following are true about entrepreneurs EXCEPT—

a)

They increase competition by bringing new goods and services to market.

b)

They take a risk to produce and sell goods and services in search of a profit.

c)

They can only set up a proprietorship or corporation.

d)

They often foster technological progress and economic growth.

14.

Which type of business is authorized to act as a legal entity, regardless of the number of owners?

a)

Proprietorship

b)

Corporation

c)

Partnership

d)

Entrepreneurship

15.

Technological innovations impact the global economy by—

a)

raising the cost of production

b)

producing goods and services at a higher opportunity cost

c)

decreasing the flow of capital

d)

contributing to the flow of goods and services

16.

Which of the following uses tax revenue from individuals and businesses to provide public goods and services?

a)

Individuals

b)

Businesses

c)

Governments

d)

Households

17.

In this scenario, Kate is a(n)—

a)

producer

b)

consumer

c)

entrepreneur

d)

human resource

18.

What type of resource is pictured here?

a)

Capital

b)

Human

c)

Natural

d)

Entrepreneurial

19.

According to the table above, what will happen if the price of a cupcake decreases from $2.00 to $1.00?

a)

Customers will buy fewer cupcakes.

b)

The cupcake baker's profits will increase.

c)

There will not be enough cupcakes produced.

d)

The cost of making the cupcakes will rise.