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Basic Economic Concepts, Economic Systems, and US Economy

Total questions: 20

Worksheet time: 15mins

Name
Class
Date
1.

What is given up when a choice is made is

a)

Resources

b)

Choice

c)

Opportunity Cost

d)

Demand

2.

The amount of goods and services producers are willing and able to sell at a certain price

a)

Supply

b)

Demand

c)

Incentive

d)

Scarcity

3.

The amount of goods and services consumers are willing and able to buy at a certain price

a)

Production

b)

Free Market Economy

c)

Demand

d)

Supply

4.

Using a good or service

a)

Consumption

b)

Production

c)

Opportunity Cost

d)

Consumer Sovereignty

5.

Examples of (a)   resources are trees, coal, oil, wind, water, etc.

6.

The inability to satisfy all wants at the same time. When something is very rare.

(a)  

7.

What type of economy does the U.S. and most countries today have?

a)

Free Market

b)

Mixed

c)

Command

d)

Traditional

8.

This type of economy is based on custom and historical precedent. People do the same work as their parents and grandparents.

(a)  

9.

This type of economy has very little or no involvement from the government.

a)

Command

b)

Free Market

c)

Mixed

10.

Countries such as North Korea and the former Soviet Union have a centrally planned economy controlled by the government. What type of economy is this?

(a)  

11.

How do you feel about the economics unit so far?

2 lines
12.

Consists of all earnings after all expenses have been paid

a)

Command

b)

Scarcity

c)

Price

d)

Profit

13.

Consumers determine through purchases what goods and services will be produced

a)

Resources

b)

Private Property

c)

Consumer sovereignty

d)

Price

14.

Rivalry between producers and/or sellers of a good or service that usually results in better quality goods and services at lower prices.

a)

Consumer sovereignty

b)

Competition

c)

Scarcity

d)

Choice

15.

Individuals and businesses have the right to own property without interference from the government.

a)

Production

b)

Consumption

c)

Private Property

d)

Traditional economy

16.

This is determined by supply and demand as buyers and sellers interact in the marketplace.

a)

Price

b)

Profit

c)

Incentive

d)

Opportunity Cost

17.

Who or what makes economic decisions in a free market economy?

a)
Individuals and Businesses
b)
Government
c)

Students

d)
Individuals, Businesses, and Government
18.

Who or what makes economic decisions in a mixed economy?

a)
Individuals and Businesses
b)
Government
c)

Cats

d)
Individuals, Businesses, and Government
19.

In a command economy the government makes most decisions

a)

True

b)

False

20.

In a free market economy individuals and businesses makes most decisions

a)

True

b)

False