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ECONOMICS

Total questions: 15

Worksheet time: 13mins

Name
Class
Date
1.

Which economic system allows for the most individual freedom?

a)

Mixed

b)

Market

c)

Command

d)

Traditional

2.

What is meant by the term 'government'?

a)

A group of people that has the power to run a country

b)

A group of people who run a country or state

3.

What definition is correct for consumers?

a)

A person or organisation that directly uses a good or service

b)

Someone who might use a good or service

c)

A person or group that is interested in using a good or service

4.

Large firms can afford to advertise and sell in larger quantities to develop brand loyalty. This is an example of

a)

Purchasing economies of scale

b)

Technical economies of scale

c)

Managerial economies of scale

d)

Marketing economies of scale

e)

Risk bearing economies of scale

5.

Larger firms are better able to diversify into a range of product areas or markets and thus lessen their risk. This is an example of

a)

Financial economies of scale

b)

Technical economies of scale

c)

Managerial economies of scale

d)

Marketing economies of scale

e)

Risk bearing economies of scale

6.
Which of the following is not a cause of internal diseconomies of scale?
a)
Poor communication between different departments
b)
Lack of staff morale and motivation
c)
Less control, direction and coordination of human resources
d)
Late deliveries due to congestion in busy locations
7.
Internal diseconomies of scale can be caused by
a)
Being unable to purchase stocks at a discounted price
b)
Management control being weakened with a larger workforce
c)
Traffic congestion causing delays to delivery of important stocks
d)
Advertising costs to a global audience
8.

Internal economies of scale are those that

a)

Result from changes in production techniques

b)

Increase due to the growth of the industry as a whole

c)

Generate lower per unit production costs

d)

Reduce production costs in the short run

9.

Fill in the blank. Economies of scale is when as output _________, unit costs ________ in the long run.

a)

increases; decrease

b)

increases; increase

c)

decreases; increase

d)

decreases; decrease

10.

Money, products, and supplies used in the production of goods and services are called

a)

Capital Resources

b)

Natural Resources

c)

Human Resources

11.

Something from nature that people can use. It is NOT created by humans. What type of resource is this?

a)

Capital

b)

Natural

c)

Human

d)

Mixture

12.

In China, 40% of the economy is based in state-run industries while 60% is based on the private sectors where producers and consumers make production decisions. What type of economy does this reflect?

a)

Mixed

b)

Command

c)

Traditional

d)

Market

13.

In a market economy, goods and services were privately owned businesses.

a)

True

b)

False

14.

The tribe relied on hunting and farming for food. The boy knew he would be a farmer just like his Dad had been. What kind of economic system does this describe?

a)

Market

b)

Command

c)

Traditional

d)

Mixed

15.

Which type of economic system does the United States have?

a)

Market

b)

Commend

c)

Mixed

d)

Traditional