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Modern Economics

Total questions: 21

Worksheet time: 12mins

Name
Class
Date
1.

__________is the study of how people (including companies/countries) make choices on buying, selling, using, and distributing goods/services.

a)

Economics

b)

Consumer Science

c)

Opportunity Costs

d)

Sociology

2.

_____ is the value of the thing someone gives up when choosing between 2 options.

a)

Scarcity

b)

Economic System

c)

Opportunity Cost

d)

Demand

3.

_______ is the father of modern economics, wrote the Wealth of Nations, and believed in a concept known as the "Invisible Hand.

a)

John Maynard Keynes

b)

David Ricardo

c)

Thomas Malthus

d)

Adam Smith

4.

Which of the following are the major economic systems used around the world?

a)

Market Economy

b)

Command Economy

c)

Mixed Economy

d)

All are correct

5.

_______ and _______ are the 2 major branches of economics.

a)

1) Psychoeconomics 2) Socioeconomics

b)

1) Pseudoeconomics 2) Real economics

c)

1) Microeconomics 2) Macroeconomics

d)

1) Aggroeconomics 2) Compositeeconomics

6.

________ is the condition in which there is insufficient supply to meet demand.

a)

Opportunity Cost

b)

Scarcity

c)

Surplus

d)

Circular Flow Model

7.

___ is the method used by a nation to answer the basic economic questions.

a)

Economic System

b)

Economic Resources

c)

Opportunity Cost

d)

Scarcity

8.

____ is the economic system in which all factors of production are privately owned.

a)

Socialism

b)

Free Enterprise

c)

All are correct

d)

Communism

9.

The resources needed to produce things are known as___

a)

Factors of scarcity

b)

Factors of opportunity cost

c)

Factors of production

d)

Factors of Supply

10.

The 4 factors of production are ____

a)

technology, animals, livestock, agriculture

b)

climate, money, pets, automobiles

c)

All are correct

d)

land, labor, capital, entrepreneurship

11.

____ is the visual representation of the relationship between producers and consumers in a free market.

a)

Production Possibilities Curve

b)

Triangular Flow Model

c)

X and Y axis

d)

Circular Flow Model

12.

____ is the visual representation of choice, scarcity and opportunity cost.

a)

Promotion Principality Curve

b)

Production Possibilities Curve

c)

Circular Flow Model

d)

Graphic Organizer

13.

Which of the following is a benefit of the Free Enterprise System?

a)

Investment opportunities

b)

All are correct

c)

Freedome for producers and consumers

d)

Competitive pricing

14.

___ is the economic system in which there is no private property and all factors of production are owned and controlled by the government.

a)

Mixed

b)

Socialism

c)

Communism

d)

Free Enterprise

15.

___is the economic system in which there are some free market elements and some factors of production are owned by the collective.

a)

Socialism

b)

Communism

c)

Free Enterprise

d)

All are correct

16.

A nation that uses Free Enterprise would have a ____economy.

a)

Command

b)

Mercantile

c)

Market

d)

All are correct

17.

A communist nation would have a ___ economy.

a)

All are correct

b)

Market

c)

Mixed

d)

Command

18.

____ is the founder of Austrian Economics and won the Nobel Prize in Economics.

a)

John Maynard Keynes

b)

Adam Smith

c)

Thomas Sowell

d)

Friedrich Hayek

19.

How did John Maynard Keynes differ from Friedrich Hayek and Adam Smith?

a)

He believed that the government should stay out of the economy.

b)

He believed that Free Markets should fix themselves and that downward cycles are a natural byproduct of this.

c)

He believed that government intervention was necessary in order to correct and prevent economic depressions.

d)

All are correct

20.

What do Adam Smith, Friedrich Hayek, Milton Friedman and Thomas Sowell have in common?

a)

Free Markets and minimal government intervention are essential to economic health

b)

Command Markets and significant government intervention are essential to economic health

c)

They have nothing in common

d)

All are correct

21.

The Cold War was a battle between Capitalism and_

a)

Market Economy

b)

Free Enterprise

c)

Communism

d)

Anarchy