WorksheetsTopic 2 Review
Total questions: 19
Worksheet time: 10mins
Name
Class
Date
1.
What are the three key economic questions every society must answer?
a)
Supply, demand, or pricing?
b)
Labor, capital, or production?
c)
what to buying, selling, and invest?
d)
What to produce, how to produce, Who consumes it?
2.
In a free market economy, who determines what goods and services are produced?
a)
The government
b)
Private buisnesses and consumers
c)
Central planners
d)
Foreign investors?
3.
Which economic system is most associated with government control of all industries?
a)
Free market economy
b)
mixed economy
c)
Centrally planned economy
d)
Traditional economy
4.
A business has to decide whether to use machines or human labor to make its products. Which key economic question is this related to?
a)
What to produce
b)
How to produce
c)
Who consumes it
d)
Who controls production
5.
Which of the following best explains the economic problem of scarcity?
a)
Governments do not distribute resources fairly
b)
The economy does not produce enough goods
c)
There are unlimited wants but limited resources
d)
People have too many choices in the market
6.
Which of the following factors does NOT affect how goods and services are produced?
a)
The personal preference of consumers
b)
Avaiability of technology
c)
Government regulations
d)
The cost of labor and resources
7.
In a centrally planned economy, who answers the three key economic questions?
a)
Buisness owners
b)
The government
c)
Consumers
d)
The stock market
8.
Which of the following is not a characteristic of a free market economy?
a)
Private property
b)
Government control of production
c)
Consumer soverighnty
d)
Competition
9.
What role does competition play in a free market economy?
a)
It forces companies to reduce wages of a worker's income
b)
It drives innovation and keeps prices low
c)
It makes all businesses the same
d)
It eliminates small businesses
10.
What is the primary motivating factor for producers in a free market?
a)
Government quotas
b)
Social Equality
c)
Profit
d)
Availability of labor
11.
In a free market system, who determines the price of goods and services?
a)
The government
b)
Labor unions
c)
Central planners
d)
Consumers and producers
12.
Which of the following is a major disadvantage of a centrally planned economy?
a)
Higher consumer choice
b)
Lack of economic efficiency
c)
Strong Competition
d)
Low government involvement
13.
In a mixed economy, who makes economic decisions?
a)
The government
b)
Buisinesses
c)
Both government and businesses
d)
The military
14.
Which country is an example of a centrally planned economy?
a)
United states
b)
North Korea
c)
Canada
d)
Germany
15.
What does the term "laissez-faire" mean?
a)
a govenment policy of heavy regulation
b)
a hands-off approach where the government minimally interferes in the economy
c)
a system where businesses must be publicialy owned
d)
a strict set of rules that businesses must follow
16.
Which of the following best illustrates Adam Smith’s idea of the “invisible hand”?
a)
The government setting prices for businesses
b)
A single company controlling the entire market
c)
Consumers and producers making choices that naturally regulate the economy
d)
The government preventing businesses from competing.
17.
In a free enterprise system, what motivates entrepreneurs?
a)
the desire for profit
b)
Government subsidies
c)
command economy rules
d)
fixed market regulations
18.
A smartphone company launches a new model with longer battery life and a better camera. In response, a competing brand develops a phone with even better features and a lower price.
How does competition impact the tech industry in this scenario?
a)
It discourages companies from innovating to reduce costs
b)
It forces companies to shut down after one competitor releases a new product
c)
It eliminates consumer choice by making all phones the same
d)
It pushes companies to create better products at competitive prices
19.
Two fast-food chains compete for customers. One chain lowers the price of its burgers, while the other introduces a special “buy one, get one free” deal.
What effect does this competition have on consumers?
a)
Consumers have fewer choices
b)
Consumers benefit from lower prices and better deals
c)
Consumers are forced to buy from one company
d)
Prices increase due to competition
100 %
