Worksheets7th Grade Civics Review SOL 12: The United States Economy
Total questions: 100
Worksheet time: 50mins
The U.S. government intervenes in the economy when the _______________ of a government policy outweigh the anticipated _______________.
benefits, costs
costs, benefits
risks, rewards
losses, gains
1. Free Enterprise: Markets are allowed to operate without _________________________________. Prices are determined by ___________________________________________.
undue interference, supply and demand
government control, presidential orders
strict regulations, federal mandates
state intervention, congressional approval
Private Property: Individuals and businesses have the right to own ___________________________ and the ___________________________________________.
private property, means of production
public parks, government buildings
natural resources, public schools
community centers, public roads
Profit Motive: Individuals have the opportunity to create businesses and earn a profit, which consists of ___________________________________________.
earnings after all expenses have been paid
total sales before any costs are deducted
the amount of money borrowed to start a business
the value of all assets owned by the business
Competition: Rivalry between producers/sellers of goods and services that usually results in ___________________________________________.
better quality goods and lower prices
higher prices and lower quality goods
less choice for consumers
monopolies forming easily
Consumer Sovereignty: Consumers determine through their purchases ___________________________________________.
what goods and services will be produced
how much profit businesses will make
the wages of all workers
the laws of the government
Price is ___________________________________________.
the amount of money exchanged for a good or service
the total number of goods produced in a year
the quality of a product or service
the time taken to deliver a product
Demand: The amount of a good or service that ___________________________________________.
consumers are willing and able to buy
producers are willing to sell at any price
is always available in the market
is produced regardless of price
LAW OF DEMAND: Consumers will buy __________ of a good or service at a __________ price and __________ at a __________ price.
more, lower, less, higher
less, higher, more, lower
less, lower, more, higher
more, higher, less, lower
Supply: The amount of a good or service that ___________________________________________.
producers are willing and able to sell
consumers are willing and able to buy
is always available in the market
is demanded at a fixed price
Producers will make __________ of a good or service when they can sell at a __________ price and __________ when they can sell at a __________ price.
more, higher, less, lower
less, higher, more, lower
more, lower, less, higher
less, lower, more, higher
Equilibrium price: The point where _______________ and _______________ meet.
supply, demand
price, cost
buyers, sellers
profit, loss
Everyone who wants to sell at that price can _______________.
sell
buy
wait
leave
Everyone who wants to buy at that price can _______________.
buy
sell
wait
leave
Proprietorship: How many owners?
One owner
Two owners
Three owners
Unlimited owners
How is the risk divided?
The owner bears all the risk
The contractor bears all the risk
The risk is shared equally
There is no risk involved
Proprietorship: How are profits divided?
The owner receives all the profits
Profits are divided equally among all employees
Profits are shared with the government
Profits are distributed to shareholders
Partnership: How many owners?
Two or more owners
One owner
Unlimited owners
No owners
How is the risk divided?
Risk is shared among partners
Risk is borne by one partner only
Risk is not divided at all
Risk is transferred to outsiders
Risk is ignored
How are profits divided?
Profits are shared among partners
Profits are given only to the manager
Profits are donated to charity
Profits are kept by the government
Who are the owners?
Shareholders
Employees
Customers
Managers
How is liability limited?
Liability is limited to the amount invested
Liability is unlimited for all partners
Liability is limited to profits earned
Liability is limited to the number of partners
How are profits divided?
Profits are distributed as dividends to shareholders
Profits are only used to pay off company debts
Profits are given entirely to the CEO
Profits are donated to charity by default
An entrepreneur is:
a person who starts and runs a business, taking on financial risks to do so
someone who only works for a company
a person who avoids taking risks
someone who manages government projects
An entrepreneur can start which type of business?
A manufacturing business
A government agency
A non-profit organization only
A school
Resources are owned by:
the government
animals
aliens
robots
What do businesses buy from individuals?
Goods and services
Taxes
Shares
Loans
Individuals get ______ in return for the resources they sell.
goods and services
taxes
government bonds
interest payments
Individuals use the income they receive in the Circular Flow to:
Purchase goods and services
Pay taxes only
Save all of it without spending
Lend it all to businesses
Businesses use the resources they buy to:
produce goods and services
store them for future use
sell them directly to consumers
discard them
What does government get from both businesses and individuals?
Taxes
Loans
Goods
Services
What does government do with the tax money it receives?
It uses the money to fund public services and infrastructure.
It saves all the money for future generations.
It gives the money back to taxpayers immediately.
It spends the money only on military expenses.
25. Private financial institutions include _______________ and _____________________.
banks; credit unions
post offices; government treasuries
central banks; ministries of finance
public sector undertakings; cooperatives
The job of financial institutions is to _______________ and _____________________.
receive deposits; make loans
print money; collect taxes
sell goods; provide insurance
build roads; manage schools
Financial institutions encourage saving and investing by ________________________________________.
paying interest on deposits
charging high fees on withdrawals
limiting access to accounts
reducing the value of savings
Financial institutions provide ____________________ to people so they can start or grow ________________________.
loans; businesses
grants; homes
advice; gardens
insurance; vehicles
The “global economy” refers to:
the interconnected economies of countries around the world
the economy of a single country
only the trade between two countries
the financial system of one continent
30. States and nations trade with each other for many reasons: To create ____________________________________________
jobs
wars
pollution
conflicts
31. States and nations trade with each other for many reasons: To buy
goods and services at a lower cost or those that they cannot produce efficiently themselves
land and territories from other countries
citizenship rights from other nations
weather patterns from other regions
32. States and nations trade with each other for many reasons: To obtain ____________________________________________
goods and services they cannot produce or produce efficiently
goods and services they already have in abundance
goods and services that are not needed by their population
goods and services that are illegal in their country
33. States and nations trade with each other for many reasons: To sell ____________________________________________
goods and services to other countries
land to neighboring states
natural disasters to other countries
laws to other nations
Virginia and the U.S. specialize in the production of certain goods and services, which promotes ________________ and ____________________________.
efficiency; growth
competition; decline
scarcity; inflation
inequality; unemployment
Technological innovations have contributed to the global flow of ________________________, ________________________, and ________________________.
information; goods; services
money; food; water
energy; minerals; crops
people; animals; plants
The use of technology lowers the ________________________________________________.
cost of production
quality of goods
number of workers required
market demand
New __________ helps improve the global flow of information, goods and services.
technology
weather
furniture
clothing
The amount of money you exchange for a good or service is called the __________ of that item.
price
value
costume
exchange
In order to encourage people to save their money, banks pay __________ on deposits.
interest
tax
rent
fine
A __________ is one type of private financial institution.
bank
hospital
school
library
Rivalry between producers and sellers of goods and services is called __________.
competition
monopoly
collaboration
subsidy
The point where supply and demand meet is called the __________ price.
equilibrium
maximum
minimum
retail
If consumers keep buying a product, then businesses will keep making it. This is called consumer __________.
sovereignty
demand
monopoly
inflation
A business owner can keep all the money he or she earns, after paying all the business expenses. This "left over" money is called __________.
profit
revenue
salary
tax
You open a pizza shop with your brother. Since you both run the business and share the profit, your business is called a __________.
partnership
corporation
franchise
sole proprietorship
The U.S. government intervenes in the economy when the ________ of a government policy outweigh the anticipated ________.
benefits, costs
costs, benefits
risks, rewards
losses, gains
Markets are allowed to operate without ________. Prices are determined by ________.
government interference, supply and demand
consumer preferences, advertising
corporate control, monopolies
taxation, government spending
Individuals and businesses have the right to own ________ and the ________.
personal property, means of production
public parks, government offices
natural resources, public schools
community centers, public roads
Individuals have the opportunity to create businesses and earn a profit, which consists of ________.
earnings after all expenses have been paid
total revenue before expenses
gross income including taxes
money received from loans
Rivalry between producers/sellers of goods and services that usually results in ________.
better quality goods at lower prices
higher prices and lower quality
less choice for consumers
monopolies forming
Consumers determine through their purchases ________.
what goods and services are made
how much money is printed
who becomes president
how laws are enforced
In a market economy, what determines the price of goods and services?
supply and demand
government regulation
tradition and custom
random chance
Price is ________.
the amount of money exchanged for a good or service
the total number of goods produced
the quality of a product
the time taken to deliver a service
Demand: The amount of a good or service that ________.
consumers want to buy
producers want to sell
is always available
is free of cost
LAW OF DEMAND: Consumers will buy ________ of a good or service at a ________ price and ________ at a ________ price.
more, low, less, high
less, high, more, low
less, low, more, high
more, high, less, low
Supply: The amount of a good or service that ________.
producers are able to offer for sale
consumers are willing to buy at any price
is always available in unlimited quantities
is demanded by the government
LAW OF SUPPLY: Producers will make ________ of a good or service when they can sell at a ________ price and ________ when they can sell at a ________ price.
more, high, less, low
less, high, more, low
more, low, less, high
less, low, more, high
Equilibrium price: The point where ________ and ________ meet. (Refer to the diagram labeled 'Equilibrium price')
supply, demand
price, cost
buyers, sellers
goods, services
Everyone who wants to sell at that price can ________.
sell
buy
leave
wait
Everyone who wants to buy at that price can ________.
buy
sell
wait
leave
How many owners? (Proprietorship)
One
Two
Three
Unlimited
How is the risk divided? (Proprietorship)
Owner takes all risk
Risk is shared equally among all employees
Risk is divided among shareholders
Risk is borne by the government
How are profits divided? (Proprietorship)
Owner keeps all profit
Profits are divided equally among all employees
Profits are shared with the government
Profits are distributed among shareholders
How many owners? (Partnership)
Two or more
One
Three
Unlimited
How is the risk divided? (Partnership)
Risk is shared
Risk is not shared
Risk is divided unequally
Risk is borne by one partner only
How are profits divided? (Partnership)
Profits are shared
Profits are given to one partner only
Profits are not divided
Profits are donated to charity
Who are the owners? (Corporation)
People who invest
Employees
Customers
Managers
How is liability limited? (Corporation)
Limited to investment
Unlimited liability for all debts
Personal assets are always at risk
Liability extends to family members
How are profits divided? (Corporation)
Profits are shared
Profits are given to only one owner
Profits are not divided at all
Profits are donated to charity
What is an entrepreneur?
A person who takes a risk to start a business in search of profit
A person who works only for a salary in a company
A person who manages government projects
A person who invests in stocks for personal gain
What type of business can an entrepreneur start?
Any of the three types
Only manufacturing businesses
Only service businesses
Only trading businesses
Who owns resources? (Refer to the Circular Flow diagram)
Individuals
Businesses
Government
Banks
What do businesses buy from individuals? (Refer to the Circular Flow diagram)
Resources
Goods
Services
Money
What do individuals get in return for the resources they sell? (Refer to the Circular Flow diagram)
Income/money
Goods/services
Debts
Taxes
What do individuals do with the income they receive? (Refer to the Circular Flow diagram)
Purchase goods and services
Bury it underground
Send it all to the government as taxes
Destroy it
What do businesses do with the resources they buy? (Refer to the Circular Flow diagram)
Purchase more resources
Sell them to households
Donate them to charity
Store them indefinitely
What does government get from both businesses and individuals? (Refer to the Circular Flow diagram)
Tax money
Loans
Goods and services
Subsidies
What does government do with the tax money it receives? (Refer to the Circular Flow diagram)
Provide public goods and services
Distribute it directly to businesses as profit
Use it only for paying government employees' salaries
Invest all of it in foreign countries
Private financial institutions include _______ and _______
banks, credit unions
hospitals, schools
supermarkets, restaurants
libraries, museums
The job of financial institutions is to _______ receive deposits _______ and _______ make loans _______.
receive deposits, make loans
make deposits, receive loans
give deposits, take loans
take deposits, give loans
Financial institutions encourage saving and investing by _______ _______.
paying interest on deposits
charging high fees
offering loans at high interest rates
limiting access to funds
requiring minimum balances
Financial institutions provide _______ financial capital _______ to people so they can start or grow _______ businesses _______.
financial capital, businesses
physical capital, homes
human capital, careers
social capital, communities
29. The “global economy” refers to:
the interconnected economies of countries worldwide
the economy of a single country
only international trade between two countries
local businesses within a city
30. States and nations trade with each other for many reasons: To create _______ jobs _______.
jobs
wars
debts
conflicts
To buy _______ goods and services at a lower cost or lower opportunity cost _______.
goods and services at a lower cost or lower opportunity cost
goods and services at a higher cost or higher opportunity cost
goods and services at the same cost or same opportunity cost
goods and services at no cost or no opportunity cost
To obtain _______ goods and services they cannot produce themselves _______.
goods and services they cannot produce themselves
money for their needs
the best possible price
help from other countries
To sell _______ goods and services to other countries _______
goods and services to other countries
money and products to other cities
products and items to local shops
services and goods to your own country
Virginia and the U.S. specialize in the production of certain goods and services, which promotes _______ and _______ .
efficiency, growth
inflation, unemployment
scarcity, decline
conflict, instability
Technological innovations have contributed to the global flow of _______ information ________, _______ capital ________, _______ goods ________, and _______ services ________.
information, capital, goods, services
goods, information, services, capital
capital, services, information, goods
services, goods, capital, information
The use of technology lowers the _______ cost of production _______.
cost of production
rate of consumption
level of pollution
amount of waste
New _______ helps improve the global flow of information, goods and services.
technology
weather
furniture
clothing
Across 6. The amount of money you exchange for a good or service is called the _______ of that item.
price
costume
place
prize
