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u2 eco systems

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

Which of the following is a summary of the basic economic questions?

a)

When, where, and by whom should goods be produced

b)

What goods and services should be produced, how, and for whom?

c)

Who will buy which goods, and how much will they pay

d)

How, when, and from who do consumers get what they want

2.

In which list is the free market most dominant?

a)

France, Canada, South Africa, UK

b)

Russia, Peru, France, Canada

c)

US, UK, Singapore, Hong Kong

d)

Cuba, Greece, China, US

3.

What is one of the most important advantages of a free market?

a)

It encourages growth

b)

It distributes goods equally

c)

It protects the less fortunate

d)

It is easy to regulate

4.

What is a synonym for a centrally planned economy?

a)

Specialized economy

b)

Unitary economy

c)

Communist economy

d)

Command economy

5.

Which of the following is a characteristic of a traditional society?

a)

It discourages new ideas and new ways of doing things

b)

public services are available at little or no cost

c)

It has a great deal of economic freedom

d)

it provides workers with few incentives to work hard

6.

. Which is an example of a safety net (method to protect consumers)?

a)

Unemployment benefits

b)

Taxes

c)

School loans

d)

Public transportation

7.

. Who plays the most important roles in the free enterprise system by starting new businesses?

a)

consumers

b)

government

c)

entrepreneurs

d)

workers

8.

Who answers the 3 basic questions in a mixed economy?

a)

people

b)

government

c)

people and the government

d)

the tribal chief

9.

Which economic system(s) do NOT reward innovation?

a)

Traditional economy

b)

centrally planned and traditional economy

c)

mixed economy

d)

centrally planned economy

10.

What is intellectual property?

a)

Hands-off style government approach to the economy

b)

Creation of the mind that has commercial value

c)

Rights of those who own land and buildings

d)

Legally binding agreement between a buyer and seller

11.

absolute advantage

a)

allocation of separate tasks to different people, based on the principle of specialization

b)

ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time

c)

an approach to production in which individual workers become highly skilled at a specific task

d)

ability to perform a task at a lower opportunity cost than someone else

12.

comparatrive advantage

a)

allocation of separate tasks to different people, based on the principle of specialization

b)

ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time

c)

an approach to production in which individual workers become highly skilled at a specific task

d)

ability to perform a task at a lower opportunity cost than someone else

13.

specialization

a)

allocation of separate tasks to different people, based on the principle of specialization

b)

ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time

c)

an approach to production in which individual workers become highly skilled at a specific task

d)

ability to perform a task at a lower opportunity cost than someone else

14.

division of labor

a)

allocation of separate tasks to different people, based on the principle of specialization

b)

ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time

c)

an approach to production in which individual workers become highly skilled at a specific task

d)

ability to perform a task at a lower opportunity cost than someone else

15.

Competition is important in the 7 goals of the USA economy because competition

a)

it keeps prices low which benefits the consumer as they get more for their money

b)

creates import taxes on foreign goods

c)

is not motivated by large corporations making profits

d)

Allows for monopolies to control the market and eliminates the power of choic

16.

. Which goal for the US Economy ends up increasing the standard of living? th

a)

Economic efficiency

b)

Economic freedom

c)

Economic equity

d)

Economic grow

17.

A synonym for the 7 goals of the US Economy is _______ a

a)

Mixed economy

b)

barter system

c)

Limited government

d)

free enterprise system

18.

In a mixed system, the government takes ______from monetary flow

a)

Government purchases

b)

Government owned factories

c)

labor

d)

taxes

19.

some of the physical flow travels from firms to the government. Which of the following would be part of that flow?

a)

Computers from government offices

b)

Salaries for government employees

c)

Social security checks paid each month

d)

import taxes paid by foreign businesses

20.

Economic growth in market economies began to rapidly grow due to which historical event?

a)

The Industrial Revolution

b)

The fall of the Roman Empire

c)

The Age of Exploration

d)

The signing of the Magna Carta

21.

What does Adam Smith’s idea of an “invisible hand” represent?

a)

A tool for measuring economic productivity

b)

The natural force that guides self-interested individuals to promote the public good

c)

The government’s role in regulating the   economy

d)

A literal hand that controls market prices

22.

What is the idea of a Laissez-Faire economy?

a)

The government should heavily regulate all industries and markets.

b)

Government controls all economic production and distribution.

c)

Markets should be controlled by a central authority to prevent monopolies

d)

The economy functions best when there is minimal government interference

23.

What is economic interdependence?

a)

The practice of countries isolating themselves from international trade.

b)

The ability of a country to produce all goods and services it needs independently.

c)

The process of a country becoming self-sufficient in all economic activities.

d)

The reliance of countries on each other for goods, services, and resources.

24.

How do division of labor and full employment affect efficiency and productivity?

a)


Division of labor increases efficiency, and full employment leads to higher productivity
C) ity.
D)

b)

Division of labor and full employment both reduce efficiency and productivity in a market economy.

.

c)

Division of labor decreases efficiency, while full employment has no impact on productivity

d)

Division of labor increases unemployment, and full employment decreases productivity

25.

equal opportunity is

a)

Same legal rights to seek education and compete in marketplace

b)

Legal agreements to buy, produce and sell goods and services

c)

Desire and incentive to work and make money

d)

Free to work, buy and sell what we want

26.

binding contracts

a)

Same legal rights to seek education and compete in marketplace

b)

Legal agreements to buy, produce and sell goods and services

c)

Desire and incentive to work and make money

d)

Free to work, buy and sell what we want

27.

profit motive

a)

Same legal rights to seek education and compete in marketplace

b)

Legal agreements to buy, produce and sell goods and services

c)

Desire and incentive to work and make money

d)

Free to work, buy and sell what we want