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Economics 5-1 Quiz

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

What is economics the study of?

a)

The study of how a society manages all of its resources to produce and distribute goods and services.

b)

The study of money and financial transactions exclusively.

c)

The study of traditional systems and their historical impact.

d)

The study of government control over production and resources.

2.

What is an economic system?

a)

An organized way that a state, nation, or country manages all their production, buying, and selling.

b)

A method for tracking the stock market.

c)

A system for monitoring cash flow exclusively.

d)

A set of rules for international trade.

3.

Which economic system is based on tradition?

a)

Market

b)

Command

c)

Mixed

d)

Traditional

4.

What characterizes a command economic system?

a)

It is based on tradition and what has been done for a long time.

b)

It operates with a capitalistic mindset within a mixed economic system.

c)

A large part of the economy is controlled by a central power, often the government.

d)

It is determined by supply and demand and characterized by competition within the market.

5.

How does a market economic system operate?

a)

By combining aspects of other economic systems.

b)

Through government control and regulation of all production and trade.

c)

By tradition and the passing down of jobs and resources.

d)

Through supply and demand with competition within the market.

6.

What is a mixed economic system?

a)

A system that combines aspects of the traditional and command systems.

b)

A system that is purely based on market principles without any government intervention.

c)

One that combines certain aspects of the other three systems.

d)

A system where the government controls all aspects of the economy.

7.

Which country operates with a capitalistic mindset within a mixed economic system?

a)

China

b)

Russia

c)

The United States

d)

North Korea

8.

What determines the price of goods and services in a market economy?

a)

The level of government regulation

b)

The amount of taxes collected by the government

c)

How much people are willing to pay

d)

The number of businesses in the market

9.

What happens to prices when the supply of something increases and the demand remains the same?

a)

Prices will go up

b)

Prices will go down

c)

Prices will not change

d)

Prices will fluctuate unpredictably

10.

What is the relationship between supply and demand in a market economy?

a)

Supply and demand are unrelated

b)

Demand drives supply, and supply drives prices

c)

Supply drives demand, and demand drives prices

d)

Demand drives supply, and supply determines the amount of resources available

11.

What role does competition play in a market economy?

a)

It decreases the overall cost per item for companies

b)

It increases government involvement in regulating prices

c)

It has no significant impact on supply and demand

d)

It is a major force driving supply and demand

12.

How does a market economy regulate itself?

a)

Through high levels of government involvement

b)

By companies selling products at the highest price possible

c)

By consumers wanting to buy things at the lowest price possible

d)

By the number of programs and services the government provides