WorksheetsEconomic Systems
Total questions: 24
Worksheet time: 12mins
What is a free market economy?
An economy based on rituals and customs
A system in which prices are not controlled by the government
A system where the government controls prices
An economy combining private enterprise and government regulation
What is a command economy?
An economy relying on habit and custom
An economy where private enterprise dominates
An economic system in which the government controls a country's economy
An economy based on voluntary exchange
What is the principle of open opportunity?
The idea that everyone has the same legal rights
The act of buyers and sellers engaging in market transactions
The concept that people can control their possessions as they wish
The principle that anyone can compete in the marketplace
What does the term 'profit motive' refer to?
The concept of voluntary exchange
The idea of public goods
The incentive that drives individuals and business owners to improve their material well-being
The principle of legal equality
What is the concept of private property rights?
The idea of public goods
The concept that people have the right and privilege to control their possessions as they wish
The principle that everyone has the same legal rights
The act of buyers and sellers engaging in market transactions
What is macroeconomics?
The study of economy-wide phenomena, including inflation, unemployment, and economic growth
The study of voluntary exchange in markets
The study of the economic behavior of small units
The measurement of total goods and services produced within a country
What is microeconomics?
The study of public goods and services
The study of economy-wide phenomena
The study of the economic behavior and decision making of small units
The measurement of total goods and services produced within a country
What does GDP stand for?
Gross Domestic Product
Government Development Program
Global Domestic Policy
General Data Processing
What is a business cycle?
The concept of voluntary exchange
The measurement of total goods and services produced within a country
Alternating periods of economic expansion and economic recession
The study of inflation and unemployment
What is a patent?
The exclusive legal right to publish artistic material
A commitment to the value of work
Exclusive rights over an invention
A legislative act referred for approval to a popular vote
What is the free rider problem?
An economic side effect that generates benefits or costs to others
The problem of people not joining a group because they can benefit without joining
A situation where older products become out-of-date
A situation where markets fail to allocate resources efficiently
What is market failure?
A situation in which a market left on its own fails to allocate resources efficiently
The problem of people not joining a group
An economic side effect that generates benefits or costs to others
A legislative act referred for approval to a popular vote
What is the poverty threshold?
An income level below that which is needed to support families or households
Government aid to the poor
The measurement of total goods and services produced within a country
The study of inflation and unemployment
What is infrastructure?
An economic side effect that generates benefits or costs to others
The part of the economy involving private transactions
Fundamental facilities and systems serving a country, city, or area
The part of the economy involving government transactions
What is an externality?
An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
A legislative act referred for approval to a popular vote
A situation where markets fail to allocate resources efficiently
The problem of people not joining a group
Match the economic systems to its characteristics or meaning.
Command economy
Centrally owned by the government
Mixed economy
Public and private sectors
Traditional economy
Customs, family, and historical basis
Free Market
Private sector, profit, and minimal gov.
The study of the economic behavior of individual persons, families, and businesses is known as (a) .
A beekeeper who produces honey helps the apple orchard next door because the extra bees help pollinate the apple trees. This an example of
a. Positive Externalities
b. Negative Externalities
c. Vertical merging
d. Collusion
An economic side effect of a good/service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
a. Side effects
b. Public Goods
c. Externalities
d. Monopolies
A market failure is best described as
a. The concept that a decision made by one party can have negative effects on another
b. The idea that market forces of supply and demand always provide the maximum benefit for society
c. The concept that a decision made by one party can have positive effects on another
d. The idea that market forces of supply and demand do not always provide maximum benefit for society
The basic support systems needed to keep an economy going, including power, communications, transportation, sanitation, and education form a country’s
urbanization.
infrastructure.
industrialization.
urban geography.
