WorksheetsPFLE Review Unit 1 and 2
Total questions: 50
Worksheet time: 45mins
What is a Command Economy?
CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand
An economic system COMBINING private and public enterprise.
When production, investment, price, and income are determined centrally by a GOVERNMENT.
A system that relies on customs, history, and time-honored beliefs.
What is one advantage of a Command Economy?
Individual freedom for everyone
Health and public services are available to everyone at little or no cost.
The government rarely interferes.
Able to adjust to change gradually
A command economy is also known as a:
Free enterprise system
Consumer-driven economy
Prosperous economy
Planned economy
Command economies cannot prevent mass unemployment.
True
False
A command economy gives people the motivation to work hard:
True
False
What is the central conflict identified by Marxism?
left vs. right
rich vs. poor
white vs. black
nations vs. other nations
What was the goal of communism, according to Marx?
the oppression of the working class
a more equal and fair society
making everybody rich
making everybody poor
What did Marx criticize about the Capitalist system?
the rich got poorer
the rich got richer
the poor got richer
the poor stayed poor
Which of the following is NOT part of the product market?
chair
movie
chicken nuggets
workers
Political and economic theory derived from the ideas of Karl Marx. The government owns all businesses and farms and provides its people's healthcare, education, and welfare.
Communism
Capitalism
Socialism
Feudalism
Government owns many of the larger industries and provides education, health, and welfare services while allowing citizens some economic choices.
Communism
Capitalism
Socialism
Feudalism
Free-market economy; people own their own businesses and property and must buy services for private use, such as healthcare.
Communism
Capitalism
Socialism
Feudalism
What type of rule is a democracy?
rule by God
rule by one, through force
rule by the people
Adam Smith would most likely agree with which statement?
Revolution is the only solution to economic problems.
Five-year plans are necessary in order to industrialize.
All nations would benefit from an agricultural economy.
Government should follow a laissez-faire policy.
Laissez-faire capitalism as attributed to Adam Smith called for
heavy taxation of manufacturers
strict government control of the economy
minimal government involvement in the economy
government investments in major industries
Adam Smith’s Wealth of Nations stressed the importance of
tradition
supply and demand
large corporations
government ownership
The amount of a good or service that producers are willing and able to sell at all possible prices during a given period of time.
Supply
Demand
Factor of Production
Production
When there is a shortage, the price will usually?
rise
fall
remain the same
equilibrium
What determines the prices of goods and services?
Supply
Demand
Supply and demand
Goods
Which of the words best matches the following definition?
Definition: “The system of how money is made and used within a particular country or region.”
Consumer
Economy
Goods
Services
Which economy is family/agricultural based?
traditional
market
mixed
command
Which economy is privately owned so everyone can participate?
traditional
market
mixed
command
Which economy is government owned?
traditional
market
mixed
command
Which economy is a mix of all 3 other types?
traditional
market
mixed
command
A sum of the goods and services a country produced each year
supply & demand
Gross Domestic Product (GDP)
standard of living
A higher GDP means a country is producing more stuff than other countries
yes
no
The level of wealth and material comfort people have compared to others
supply & demand
Gross Domestic Product (GDP)
standard of living
What type of economy does the U.S. primarily have, as described in the text?
Command economy
Mixed economy
Socialist economy
Totalitarian economy
According to the text, what is a key feature of a market economy?
Government ownership of services
Competition among private companies
Single provider for each service
Fixed prices set by the government
What is a key characteristic of a mixed economy as described in the document?
The government owns no property and provides no services
The government and private sector share roles in providing goods and services
All property is owned and managed by private companies
The government has no influence on the economy
What is a market?
A place where buyers and sellers exchange goods and services
A place where only buyers exchange goods and services
A place where only sellers exchange goods and services
A place where goods and services are produced
What is a free market economy?
An economic system where the government controls all economic decisions
An economic system where individuals and businesses make their own decisions in the market
An economic system where goods and services are produced by the government
An economic system where individuals and businesses have no control over economic decisions
What are the three key economic questions determined in a free market economy?
What to buy, how much to buy, and for whom to buy
What to produce, how much to produce, and for whom to produce
What to sell, how much to sell, and for whom to sell
What to consume, how much to consume, and for whom to consume
Which of the following is a key principle of a free market economy?
Government control of production
Prices are set by central planners
Self-interest drives economic decisions
Equal distribution of wealth
What is one advantage of a free market system?
It leads to economic growth and innovation
The government controls resource allocation
There is no need for businesses to compete
All businesses are owned by the state
How do consumers influence what is produced?
By voting
By their purchasing decisions
By social media
By government lobbying
What encourages businesses to improve products and lower prices?
Government incentives
Competition
Consumer feedback
Market research
