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Econ Unit 1

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

Which of the following types of economy has the least strict regulations?

a)

Market

b)

Command

c)

Mixed

d)

Traditional

2.

What are materials needed for labor to work?

a)

Capital

b)

Land

c)

Labor

d)

Entrepreneurs

3.

What shows the cost of producing 1 good instead of another?

a)

Production Possibility Curves

b)

Factors of Production

c)

Functions of Money

d)

Scarcity

4.

A liquid asset is one where the asset is easily ________.

a)

converted to the medium of exchange

b)

transported to a bank

c)

exchanged because of the intrinsic value of commodity money.

d)

circulated throughout the economy in a given year.

5.

Marcella puts money into a savings account. What function of money does this illustrate?

a)

store of value

b)

medium of exchange

c)

standard of value

d)

means of payment

6.

Which of the following economic systems is Communism?

a)

Command

b)

Market

c)

Traditional

d)

Mixed

7.

Voluntary exchange is associated with what term?

a)

Economic Freedom

b)

Monetary Policy

c)

Economic Systems

d)

Federal Reserve

8.

Supply and Demand is associated with what term?

a)

Free Market

b)

Monopoly

c)

Economic Regulation

d)

Circular Flow Model

9.

What type of economic system is Capitalism?

a)

Market

b)

Command

c)

Traditional

d)

Mixed

10.

Which of the following types of economy combines aspects of multiple different types?

a)

Mixed

b)

Traditional

c)

Command

d)

Market

11.

Which of the following types of economy has the least specialized labor?

a)

Traditional

b)

Market

c)

Command

d)

Mixed

12.

Which of the following types of economy has the most strict regulations?

a)

Command

b)

Market

c)

Mixed

d)

Traditional

13.

What would resources like oil and crops be considered?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneur

14.

An entrepreneur is what?

a)

A business owner

b)

The person who does the work to produce

c)

Materials needed to work

d)

Natural resources

15.

A teacher is a example of:

a)

Labor

b)

Land

c)

Capital

d)

Entrepreneur

16.

The Federal Reserve is led by who?

a)

A chairman

b)

A governor

c)

A president

d)

A secretary

17.

The Federal Reserve's main job is to:

a)

increase or decrease the money supply through monetary policy

b)

regulate the nation's legislative branch through judicial means

c)

make policy about immigration

d)

act as a foreign diplomat during times of war

18.

In the United States, the agency responsible for regulating the system of fiat money is the:

a)

Federal Reserve

b)

Department of Treasury

c)

Bureau of Labor Statistics

d)

Internal Revenue Service

19.

What gives fiat money its value?

a)

The government

b)

Gold reserves

c)

The amount of silver it contains

d)

Its ability to be exchanged for foreign currency

20.

Paper money that has no intrinsic value is referred to as:

a)

fiat money

b)

commodity money

c)

curved money

d)

federal money

21.

Fiat money is best described as:

a)

paper money issued by the government

b)

gold coins used in trade

c)

cryptocurrency like Bitcoin

d)

barter items such as livestock

22.

All of the following are examples of commodity money except?

a)

Fiat Money

b)

Gold Coins

c)

Silk

d)

Cigarettes

23.

All of the following are non-liquid except which?

a)

cash

b)

land

c)

machinery

d)

buildings

24.

Which of the following would exemplify an asset with the most liquidity?

a)

A checking account that has unlimited access to funds.

b)

A savings account that allows 6 withdrawals per month.

c)

A certificate of deposit with a 5-year term.

d)

The sale of a house that requires a year of effort to sell.

25.

You receive money as payment for working at a grocery store. This best illustrates which function of money?

a)

medium of exchange

b)

unit of account

c)

store of value

d)

Fiat Money

26.

Money holds the ability to transfer purchasing power from the present to the future as a ________.

a)

store of value

b)

medium of exchange

c)

unit of account

d)

Liquid Asset

27.

Money allows us to compare the value/cost of goods, services, or assets, which serves as a:

a)

standard of value

b)

medium of exchange

c)

store of labor

d)

unit of production

28.

When money acts as an item that buyers give to sellers when they purchase goods or services is a:

a)

medium of exchange

b)

standard of value

c)

store of value

d)

commodity

29.

Which of the following is not a function of money?

a)

barter or commerce

b)

medium of exchange

c)

store of value

d)

unit of account

30.

Milin puts money into a piggy bank so she can spend it later. What function of money does this illustrate?

a)

store of value

b)

medium of exchange

c)

unit of account

d)

factors of production

31.

Who invented Capitalism?

a)

Karl Marx

b)

Adam Smith

c)

Nicholas Hughes

d)

George Washington

32.

Which type of economy is mainly based on agriculture?

a)

Mixed

b)

Market

c)

Traditional

d)

Command

33.

Which of these terms is not associated with capitalism?

a)

Strict Regulations

b)

Invisible Hand

c)

Competition

d)

Consumer Sovereignty

34.

This shows the tradeoff of making a choice?

a)

Scarcity

b)

Systems of Economies

c)

Factors of Production

d)

Opportunity Cost

35.

What are the factors of production?

a)

Land

b)

Labor

c)

Capital

d)

All of these

36.

In a market economy, who sets the value of a item?

a)

The government

b)

The producers

c)

The consumers

d)

None of these

37.

The majority of countries in the world have which system?

a)

Mixed

b)

Command

c)

Traditional

d)

Market

38.

What is the oldest form of economy?

a)

Market

b)

Traditional

c)

Mixed

d)

Command

39.

Which of the following is a financial asset?

a)

Credit Card debt

b)

A dog

c)

Student Loans

d)

A house

40.

What are the three questions a economy must answer?

a)

What to produce

b)

How to produce

c)

Who to produce for

d)

All of these