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Economic Review

Total questions: 20

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following do economic systems organize for societies? (Check all that apply)

a)

Production of goods and services

b)

Distribution of goods and services

c)

Consumption of goods and services

d)

Destruction of goods and services

2.

Which economic system does the government make all economic decisions and owns most of the property - it is sometimes called communism?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

3.

Which type of economic system is it when the market decides what needs to be produced, private businesses decide how to produce, and consumers decide what they are willing to pay for goods?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

4.

Which type of economic system is it when the government decides what to produce, the government decides how to produce, and the government decides who gets the goods produced?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

5.

Which economic system is it when people decided what to produce, people decide how to produce, and people only produce goods and services for themselves and trading purposes?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

6.

What is the key factor in determining the type of economy that a country has?

a)

level of government involvement.

b)

amount of resources a government has available.

c)

amount of private ownership.

7.

Which term is best defined as “the inability to satisfy all wants at the same time?”

a)

Supply and Demand

b)

Price

c)

Scarcity

8.

Which indicator: total value of all final goods and services produced within a country's borders within a given period of time.

a)

Gross Domestic Product (GDP)

b)

Unemployment

c)

Consumer Price Index/Inflation

d)

Fiscal and Monetary Policy

9.

a good GDP growth rate usually indicates all of the following EXCEPT

a)

higher literacy rates and education achievements

b)

higher life expectancy and better health

c)

higher crime and poverty rates

d)

higher standard of living

10.
What is the purpose of GDP?
a)
1) To reflect the overall health and growth of an economy.
b)
2) To measure inflation.
c)
3) To measure unemployment.
11.

Which of the following would NOT be counted in the US's GDP?

a)

A used car your grandfather sold you

b)

You buy a new pair of shoes online

c)

A business buys tires to resell

d)

A city government's spending on a new park

12.

What is the best measure of a nation's standard of living?

a)

real GDP per capita

b)

population growth

c)

savings

d)

national income

13.

A general increase in prices is called

a)

inflation

b)

purchasing power

c)

the CPI

d)

a price index

14.

People who underemployed

a)

no longer look for work

b)

work part time or at jobs that are below their skills

c)

are the same as unemployed workers

d)

experience only frictional employment

15.

Inflation reduced people's purchasing power because

a)

the same amount of money buys ore goods and services

b)

the same amount of money buys fewer goods and services

c)

the market basket has to be changed every year

d)

there is not enough money in the economy

16.

Is this counted in the GDP of the US?

The federal government purchases a new submarine for the US Navy.

a)

Yes

b)

No

17.
What the definition of deflation? 
a)
decrease in the average price of goods and services
b)
occurs when the price of goods and services rise
c)
increase in prices
d)
I don't know
18.
What causes demand pull inflation?
a)
rise in price due to a decrease in supply
b)
a rise in price level due to an increase in consumption
c)
a rise in price due to an increase in the cost of production
d)
a decrease in price due to a decrease in supply
19.

Which of the following best defines unemployment?

a)

The state of being able to work and actively seeking work, but unable to find employment

b)

The state of being able to work, but choosing not to

c)

The percentage of the labour force that is able and actively seeking work, but cannot find employment

d)

The total number of people who do not work

20.

Which of these people is officially unemployed

a)

A secretary who took 6 months off for maternity leave

b)

An aspiring actress who waits tables but would rather act

c)

Maid who got fired and will start a new job in 2 weeks

d)

A student who only works 4 hours a week in the library