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Economics Vocabulary Ch 7

Total questions: 15

Worksheet time: 30mins

Name
Class
Date
1.

Which term refers to the factories, machines, tools, and other man‑made goods used to make other goods or services?

a)

Natural resources

b)

Capital goods

c)

Human capital

d)

Productive resources

2.

What is a command economy?

a)

An economy where traditions guide production

b)

An economic system based on government control and regulations

c)

An economy where buyers and sellers set prices through markets

d)

An economy based on both market and command elements

3.

Demand is best described as:

a)

How much a good or service is produced at a certain price

b)

How much of a good or service consumers want and are able to buy at a certain price

c)

The ratio used to compare currencies

d)

The talents and skills of workers

4.

Export is defined as:

a)

A good or service sold to another country

b)

A tax on imported goods

c)

A ban on trade with a nation

d)

A good or service brought into a country

5.

Match each trade term to its definition.

a)

Export

1.

A good or service sold to another country

b)

Import

2.

A good or service brought into a country

c)

Embargo

3.

A ban on trade with a specific nation or group of nations

d)

Tariff

4.

A tax placed on goods brought into a country

e)

Quota

5.

A limit on the quantity of a good that can be imported

6.

Gross domestic product (GDP) measures:

a)

The percentage of adults who can read and write

b)

The total market value of all goods and services produced by a country in a specific year

c)

How much one currency can be exchanged for another

d)

The number of factories in a country

7.

Which pair correctly matches the factor with its definition? Select all that apply.

a)

Human capital: skills and labor of people used to produce goods and services

b)

Capital goods: naturally made items like trees and water

c)

Productive resources: materials and labor used to create goods and services

d)

Natural resources: man‑made equipment used in factories

8.

Literacy rate refers to:

a)

The ratio for exchanging one currency for another

b)

The measure of adults who can read and write

c)

The number of goods a country exports

d)

The cost of living in cities

9.

Market economy is an economic system based on:

a)

Government control and regulations

b)

Traditional customs and values

c)

Supply and demand, where consumers and producers can buy and sell what they want

d)

Bans on trade

10.

A mixed economy is best described as:

a)

An economy with elements of both market and command economies

b)

An economy based only on customs

c)

An economy with no government involvement

d)

An economy that trades only with partners

11.

Supply is defined as:

a)

How much of a good or service consumers want at a certain price

b)

How much of a good or service is produced or is available at a certain price

c)

The exchange of goods across countries

d)

The quality of life in a nation

12.

Match each economic system with its description.

a)

Traditional economy

1.

Based on traditional customs and values

b)

Market economy

2.

Based on supply and demand with consumer and producer choice

c)

Command economy

3.

Based on government control and regulations

d)

Mixed economy

4.

Includes elements of both market and command

13.

To specialize means to:

a)

Measure quality of life using income and education

b)

Become an expert in a particular subject, skill, or trade to produce a limited variety of goods and services

c)

Exchange one currency for another

d)

Set limits on imported goods

14.

Standard of living measures:

a)

A nation's quality of life based on income, education, life expectancy, and other factors

b)

The amount of goods a country exports

c)

The number of skilled workers in a country

d)

The exchange rate between two currencies

15.

Exchange rate is the ratio used to determine:

a)

How much of a good consumers want

b)

How much of one currency can be exchanged for an equal value of another currency

c)

The tax placed on imports

d)

The total value of goods and services produced