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Economics EOC Quiz
Fundamental Economic Concepts - (SSEF4) Economic Systems, (SSEF5) Roles Of Government, (SSEF6) Productivity
Student Name:
_______________________
Teacher Name: Heather Creamer
_________
Score: _________
Date:
1) In a command economy, how are the prices of goods and services determined?
A)
business owners
B)
the central government
C)
market forces of supply and demand
D)
independent agencies and independent regulators
2) In a command economy, how is it determined what goods and services will be produced?
A)
Businesses decide what to produce on the basis of market conditions.
B)
Consumers decide through their behavior in the marketplace.
C)
Central government planning decides what will be produced.
D)
Supply and demand control production and price.
3) In a market economy, prices are established by
A)
consumers and labor unions.
B)
decree of government agencies.
C)
the interaction of supply and demand.
D)
businesses which buy and sell the products.
4) Why is the consumer considered "king" in a capitalist economy?
A)
consumers own the productive resources
B)
consumers contribute to the factor market
C)
consumers vote for elected government officals
D)
consumers determine what products will be produced
5) Communism and socialism are usually found in what type of economic system?
A)
command
B)
traditional
C)
pure market
D)
mixed market
6) In this type of economic system, the production of goods and services is controlled solely by the concept of supply and demand,
businesses are operated for profit, and the government is not involved.
A)
command
B)
communism
C)
market
D)
mixed
7) In capitalist economies, prices are
A)
usually unfair.
B)
set by the central government.
C)
used to ensure social equality.
D)
determined by supply and demand.
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8) Which of these is a correct description of one of the ways in which a command economy differs from a market economy?
A)
Market economies discourage free enterprise.
B)
In a market economy, the government sets prices.
C)
Command economies tend to have a higher per capita GDP.
D)
In a command economy, individuals have less economic freedom.
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9) In this type of economic system, the government controls all aspects of the economy and makes all decisions about what goods
will be produced, who will produce them, and how they will be produced.
A)
command
B)
market
C)
mixed
D)
traditional
10)
· Decentralized decision making.
· Adjusts to changes in the market place.
· Producers and consumers have control of the economy.
All of these are characteristics of a ___ economy.
A)
command
B)
market
C)
socialist
D)
traditional
11) Rationing is a system under which an agency such as the government decides everyone's "fair" share. Rationing has often been
used during wartime. If people receive a set ration regardless of the amount of work completed, how would this affect peoples'
incentive to work?
A)
The incentive to work will not change.
B)
People might feel more inclined to work.
C)
People might feel less inclined to work.
D)
There is no effect on the incentive to work.
12)
Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously. It can
be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a
war, but at the same time, through this employment, accomplishing greatly needed projects to stimulate and reorganize the
use of our natural resources.
-Franklin D. Roosevelt, First Inaugural Address, 1933
Four years after the stock market crash, FDR became the thirty-second president. This portion of his speech MOST LIKELY illustrates
his belief that
A)
governments should go to war to increase the number of jobs in the military.
B)
governments should get actively involved in addressing unemployment.
C)
the natural resources of the U.S. were running out.
D)
the U.S. was on the brink of WWII.
13) A government that operates a market economy MIGHT become involved in the economy
A)
to increase the profits of a specific company.
B)
to eliminate income inequality among its citizens.
C)
to make sure all products are produced the same way.
D)
to provide public goods and services to its citizens.
14) The United States government is LEAST LIKELY involved in the nation's economy as a
A)
consumer of goods and services.
B)
planner deciding what to produce.
C)
protector against false advertising and environmental hazards.
D)
regulator charged with preserving competition in the marketplace.
15) How do private property rights contribute to a capitalist system?
A)
The government owns most of the factors of production.
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B)
C)
D)
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High quality products and reasonable prices are guaranteed.
Individuals are free to own the resources used to produce goods.
Businesses can determine what to produce based on consumer demand.
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16) Which of these is MOST LIKELY a result of a high unemployment rate in the United States?
A)
increased revenues
B)
increased demand for consumer goods
C)
increased production of capital goods
D)
greater government expenditures for transfer payments
17) Which of these is an example of how the U.S. Constitution protects the free enterprise system?
A)
Congress is given the power to borrow money.
B)
Congress is given the authority to collect taxes.
C)
Congress is given the authority to raise and support armies.
D)
Congress is given the authority to grant patents and copyrights.
18) Which of these is the BEST example of how the free enterprise system of the United States promotes individual initiative?
A)
Men must register for selective service.
B)
A citizen may be called to serve on a jury.
C)
The legislative branch levies an income tax.
D)
Authors can have original works copyrighted.
19) In the mid-2000s problems with corporations such as Enron, Worldcom, and Tyco demonstrated renewed and growing public
concern about
A)
the volatile energy market.
B)
unchecked business practices.
C)
the depletion of America's natural resources.
D)
the effect of foreign competition in U.S. markets.
20)
To promote competition...in order to secure lower prices and higher quality services for American
telecommunications consumers and encourage the rapid deployment of new telecommunications
technologies.
-Telecommunications Act of 1996
The Telecommunications Act of 1996 is MOST LIKELY an example of
A)
regulation.
B)
divestiture.
C)
deregulation.
D)
market failure.
21) Investment in education, training, and skill development has been linked to
A)
declining job satisfaction.
B)
growing financial instability.
C)
increasing earnings for workers.
D)
decreasing political participation.
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22)
According to the information from the U.S. Department of Labor, which factor has the GREATEST impact on raising labor
productivity?
A)
research & development
B)
education & skill
C)
profit sharing
D)
recruitment
23) Bob would like to increase his earnings. The option MOST LIKELY to increase his earnings potential in the long-term is to
A)
spend money to renew current training.
B)
take a similar position with a different company.
C)
spend money for additional training and education.
D)
laterally transfer to a different job within his company.
24) Increased education and training within a nation will most likely result in
A)
a decrease in entrepreneurship.
B)
a decrease in Gross Domestic Product (GDP).
C)
an increase in Gross Domestic Product (GDP).
D)
an increase in the presence of natural resources.
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25)
What generalization about educational attainment and annual earnings can be made according to the graph?
A)
Investment in education can lead to higher annual earnings.
B)
Annual earnings remain constant for all educational degrees.
C)
A worker with some college earns more annually than a worker with an Associate's degree.
D)
Although a worker with a Professional degree earns more initially, the annual earnings decrease over time.
26) If a government wanted to improve the productivity of its human resources it could
A)
lower interest rates to make borrowing money easier.
B)
invest more money in developing solar and wind energy.
C)
commit to drilling for oil in protected wildlife areas.
D)
expand funding and opportunities for vocational training.
27) A measure of the amount of output produced by a given amount of inputs in a specific period of time is the definition of
A)
allocation.
B)
productivity.
C)
opportunity costs.
D)
equilibrium price.
28) Which of these is the MOST significant impact of the wide availability of computers and high-speed internet connections since
the start of the 21st century?
A)
an increase in television sales
B)
a decrease in college graduates
C)
more people teleworking from home
D)
renewed interest in the space program
29) An investment in improving the skill level of labor is considered an investment in
A)
human capital.
B)
entrepreneurship.
C)
improved technology.
D)
capital improvements.
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30) When the amount of output produced by a given amount of inputs increases, the MOST LIKELY result is
A)
overall productivity rises.
B)
economic interdependence rises.
C)
consumer spending on productive resources increases.
D)
business spending on productive resources increases.
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