WorksheetsEconomics: Work and Prosperity Test 6
Total questions: 63
Worksheet time: 56mins
Match each definition with the correct term.
advocates the stockpiling of gold and silver in the state's treasury
mercantilism
advocates massive public spending during recessions
Keynesianism
based upon public and governmental control of the production and distribution of nearly all national resources
Communism
can seep into an economy without the majority of people realizing that their foundational freedoms are being dissolved away
socialism
Match each definition with the correct term.
reducing taxes makes more money available for private investment, thereby increasing productivity
supply-side economics
regards the entire world as one giant community that should be unified politically and economically
globalism
the exclusive power of an independent state to rule and regulate internal affairs without foreign interference
national sovereignty
What was designed to require nations to buy allowances of
"carbon credits" to decrease CO, and reduce greenhouse emissions?
(a)
What was established at the end of World War II to provide capital needed to rebuild war-torn Japan and Western Europe?
(a)
During which phase of the business cycle do industries increase the amount of goods they produce?
(a)
What is the American system of mandatory social insurance?
(a)
What German city was divided during the Cold War?
(a)
What is the official currency of the European Union?
(a)
What is the highest point of the business cycle?
(a)
Match each economist with the correct description
Pierre Samuel du Pont
Physiocracy
Milton Friedman
monetarism
Thomas Robert Malthus
prophet of doom
Carl Menger
Diamond-Water Paradox
Match each economist with the correct description.
David Ricardo
comparative advantage
Adam Smith
invisible hand
Henry Ford
standardized parts
Franklin Roosevelt
New Deal
Match each economist with the correct description
Ronald Reagan
supply-side economics
Karl Marx
Das Kapital
Sir Thomas Gresham
"Bad money drives out good."
A prosperous economy depends upon (a) , the trait of doing quality work in an efficient manner.
(a) trade agreements respect national sovereignty and allow countries to consider their national and moral interests.
____ ______ is legal tender that is backed by nothing but a government's promise.
(a)
(a) is anything that is generally accepted as a means of payment.
A (a) contract forces a consumer to buy certain products before he can buy the ones he really wants.
When the price of a good falls, the quantity supplied tends to (a) .
The principle of ________ _________ states that as one's supply of a good increases, the satisfaction derived from each additional unit tends to decrease.
(a)
The primary responsibilities of a government should be rewarding good and ______ ____.
(a)
________-____ inflation is caused when the demand becomes greater than the supply.
(a)
_______ _____ banking is a system that allows banks to not hold all their deposits in reserve.
(a)
When the division of labor is carried past the point of maximum efficiency, the result is (a) .
If the price of a certain type of cereal doubled and caused consumers to cut in half the amount of that cereal they bought, the demand for that good would be (a) .
A population increase will cause a change in (a) .
(a) deals with the study of specific components within a major economy.
Match each definition with the correct term.
large, complex organizations composed of appointed officials and numerous departments
bureaucracies
mechanism that allows people to exchange goods
market
used to determine how much of a good to buy or sell
market signal
commits resources to a purpose expected to provide future gain
investment
Match each definition with the correct term.
intangible good produced for which people expect to pay
service
separates the work to be performed into individualized tasks
division of labor
allows a country to produce those goods in which it has absolute or comparative advantage
geographic specialization
value of the best alternative that is foregone when a different alternative is taken
opportunity cost
What are the four factors of production?
(a)
What global organization was created to maintain international peace?
(a)
Besides time and rate of return, what else determines how much an investment grows?
(a)
What system controls the money supply of the United States?
(a)
What is the ability of an entity to produce a good at an opportunity cost that is lower than that of another producer?
(a)
What usually results when a government fixes a good's price above its equilibrium price?
(a)
What type of good is an oven used to bake bread in a bakery?
(a)
What was the name of the French group whose members were some of the earliest influential advocates of laissez-faire economics?
(a)
Who is the founder of modern economics and author of The Wealth of Nations?
(a)
What is a system for the production, distribution, and consumption of goods?
(a)
What is the result when too much money is in circulation?
(a)
What is the total amount invested in the production of a good?
(a)
What is the relationship between a good's price and the amount that people are willing to buy?
(a)
What type of monopoly is a copyright on a novel?
creative
normal
legal
natural
What organization holds a policy of "most-favoured nation"?
NAFTA
WTO
GATT
IMF
What is one of the safest ways to invest in a corporation?
bonds
mutual funds
preferred stock
common stock
What type of market model results in firms that are price takers?
monopoly
oligopoly
monopolistic competition
perfect competition
What type of market model is dominated by only a few firms?
monopoly
oligopoly
monopolistic competition
perfect competition
What function of money allows people to compare the worth of one good with that of another good?
standard of worth
store of value
measure of value
medium of exchange
A checking account is what type of account?
savings account
CD
money market account
transaction account
What is the sum cost of all the factors of production used in making goods?
opportunity cost
average cost
adjusted cost
total cost
Which economic system is guided by the choices made by the private sector?
traditional
mixed
free enterprise
command
Which economic system bases production of goods on customs and habits?
traditional
mixed
free enterprise
command
What is a basic component of capitalism besides limited government, freedom of enterprise, and competition?
capital goods
property rights
mass production
division of labor
What was originally established to monitor currency exchange?
NAFTA
WTO
GATT
IMF
What agreement among the United States, Canada, and Mexico encouraged free trade?
NAFTA
WTO
GATT
IMF
What type of market model results when there is only one supplier of a good for which there is no substitute?
monopoly
oligopoly
monopolistic competition
perfect competition
What type of market model provides differentiated products?
monopoly
oligopoly
monopolistic competition
perfect competition
What is the value of all finished goods and services produced within a country during a year's time?
GNP
GDP
CPI
GOP
What type of account guarantees a certain interest rate and has a specified maturity date?
savings account
CD
money market account
transaction account
Besides division of labor and automatic conveyance, what composes the "American system" of mass production?
production efficiency
free enterprise
standardized parts
abundant resources
What was one of the first antitrust laws enacted in the United States?
Federal Trade Commission Act
Clayton Act
Gershwin Act
Sherman Act
Which economic system is regulated by the public sector?
traditional
mixed
free enterprise
command
When supply of a good increases, what tends to decrease?
supply curve
equilibrium price
quantity demanded
demand
Besides its utility, what else determines the value of a good by a consumer?
appeal
productivity
adequacy
scarcity
