WorksheetsUnit 1 Test
Total questions: 30
Worksheet time: 5hrs 0mins
Which of the following is an example of a durable good?
A Car
Clothing
Food
Paper Product
Which of the following IS NOT one of the questions all societies face?
What to produce
How often to produce
How to produce
For Whom to produce
What is the fundamental economic problem facing all societies?
Competition
Too many resources
Too many consumers
Scarcity
Which of the following is NOT a factor of production?
Entrepreneurs
Land
Opportunity Cost
Capital
The production possibilities curve illustrates all possible combinations of __________.
Output
Products
Input
Services
Which of the following is not a consumer right?
Right to Choose
Right to be Informed
Right to Safety
Right to Exchange
The division of labor and specialization can improve __________.
Pricing
Productivity
Consumer Habits
Standard of Living
Which of the following is NOT a feature of the Circular Flow of economic activity?
Government Agencies
Business
Production Markets
Factor Markets
A major contribution to productivity comes from investments in _________.
Facilities
Land
Stocks
Human Capital
Which of the following is not a characteristic of a traditional economy?
New ideas are discouraged & innovation is rare
There is a lower standard of living
Life is stable and predictable
There is a high degree of consumer satisfaction
Which of The following is NOT a characteristic of a command economy.
Many basic health, education, and public services are available at little to no cost
A central authority decides WHAT, HOW, and FOR WHOM to produce
A lack of government interference in economic dealings
Property rights for most citizens are very limited
In a Communist Economy, who has control over the factors of production?
Consumers
The State
Business Owners
Both A and C
Which category does the economy does of the United States fall into?
Mixed Market Economy
Mixed Socialist Economy
Communist Economy
None of the Above
__________ involves the shift of an economy, or part of an economy, from private ownership to government ownership?
Collectivization
Privatization
Nationalization
Isolationism
___________ involved the forced common ownership of all agricultural and industrial enterprises in Russia.
Collectivization
Privatization
Nationalization
Isolationism
Which of the following is NOT a characteristic of capitalism?
Lack of Competition
Voluntary Exchange
Profit Motive
Economic Freedom
Which of the following is a Disadvantage of capitalism?
A variety of goods are available for consumers
The economy is able to adapt to change
There is always a gap between the rich and poor
There is competition between sellers
How does competition benefit a capitalist economy?
Individual businesses are able to produce the products of their choosing
It assures that unpopular products will not be produced
Only the most efficient producers survive
All of the above
The ________ is a risk-taking individual in search of profits.
Investor
Consumer
Entrepreneur
Manufacturer
The _______ has a sovereignty in the market and ultimately determines what types of products and services are produced.
Entrepreneur
Government
Consumer
Producer
The government serves as a ______ for citizens by making laws against misleading advertising and unsafe products.
Provider
Protector
Regulator
Consumer
It is illegal for employers to discriminate on the basis of...
Age
Race
Religion
All the Above
Which of the following does NOT provide protection from adverse events for Americans?
Medicare
Government Bonds
Welfare
Social Security
Americans place a high value on economic ____________.
Freedom
Compromises
Inflation
Interdependence
If inflation occurs, workers need more money to pay for food, clothing, and shelter.
True
False
In Mixed economies, programs such as health insurance and education are free and no one has to pay for them.
True
False
In a traditional economy, most of the major decisions are made based by government officials
True
False
In countries with a history of command or socialist economies, the GDP per capita is typically lower than those in capitalist countries.
True
False
Most countries that want the advantage of capitalism focus on its benefits and fully understand it costs
True
False
In a mixed economy, people and businesses carry on their economic affairs freely, but they are subject to some government intervention
True
False
