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Exam 2 Part 2

Total questions: 32

Worksheet time: 16mins

Name
Class
Date
1.

Prices set by the government

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

2.

Free competition

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

3.

Welfare states

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

4.

Lack of growth and progress

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

5.

Consumers make economic decisions.

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

6.

Government sets production quotas.

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

7.

Government tells workers where they will work.

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

8.

Based on habits, customs, and beliefs

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

9.

Individuals and businesses own the means of production.

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

10.

Sweden

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

11.

North Korea

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

12.

Subsistence system

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

13.

Government makes all economic decisions.

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

14.

High taxes

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

15.

Government owns part of the means of production.

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

16.

United States

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

17.

Amazon Rainforest communities and Australian Aborigines

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

18.

Government regulates but does not control the economy.

a)

Communist command economic system

b)

Market economic system

c)

Socialist command economic system

d)

Traditional economic system

19.

Which of the following best describes the nature of supply and demand in economics?

a)

Supply and demand refer to the relationship between the availability of goods and the desire for them.

b)

Supply and demand are only relevant in the context of government policies.

c)

Supply and demand are unrelated concepts in economics.

d)

Supply and demand only apply to luxury goods.

20.

Which of the following is a factor that can affect supply and demand in a market?

a)

Changes in consumer preferences

b)

The color of the product packaging

c)

The number of letters in the product name

d)

The day of the week the product is sold

21.

Goods that are bought and used together are

a)

complementary goods

b)

substitute goods

c)

income goods

d)

unrelated goods

22.

The Law of Demand

a)

the desire to own something

b)

when a good's price is lower, consumers will buy more of it. When a good's price is higher, consumers will buy less of it

c)

describes how much of a good is offered for sale at a specific price.

d)

the higher the price, the larger the quantity produced

23.

If the demand curve shifts to the right, then the supply curve move up and to the right

a)

true

b)

false

24.

A shortage of a good is often a signal for a producer to

a)

lower the production of that good

b)

lower the prices of that good

c)

raise the prices of that good

d)

shift production to another good

25.

The change in consumption resulting from a change in income

a)

substitution effect

b)

demand schedule

c)

Income effect

d)

none of the above

26.

As prices rise, sellers will offer more goods and services for sale.

a)

Supply

b)

Law of Supply

c)

Change in supply

d)

demand

27.

Which of the following best describes the main focus of economics?

a)

The study of how to meet unlimited, competing wants with limited resources

b)

The study of how to create unlimited resources

c)

The process of maximizing profits without considering resources

d)

The study of how to avoid making decisions

28.

Which of the following best describes the characteristics of wants?

a)

Limited, static, and non-competing

b)

Unlimited, changing, and competing

c)

Limited, changing, and non-competing

d)

Unlimited, static, and non-competing

29.

Which of the following is NOT one of the three main types of economic resources?

a)

Natural resources

b)

Human resources

c)

Technological resources

30.

A country is experiencing a rapid increase in population. Based on the information provided, what is a likely consequence for its natural resources?

a)

Natural resources will become more limited due to higher demand.

b)

Natural resources will become unlimited.

c)

The cost of obtaining resources will decrease.

d)

Technology will automatically improve

31.

Suppose a country has limited resources and must decide between producing more healthcare services or more consumer electronics. Which economic concept is being applied when making this decision?

a)

Scarcity

b)

Economizing

c)

Abundance

d)

Overproduction

32.

Which of the following best describes the concept of opportunity cost?

a)

The total amount of money spent on a project

b)

The benefit that is lost when you decide to use scarce resources for one purpose rather than for another

c)

The profit gained from making a business decision

d)

The time taken to complete a task