Download B - Salem City Schools

Unit 6
Economics
America’s Market Economy
Unit 6 Test
Review
(SOL 9)
Economics is
A.
B.
C.
D.
producers and consumers interacting in
the marketplace.
the branches of government checking
each other.
government and business interacting in
the marketplace.
Republicans and Democrats interacting in
the marketplace.
A
Factors of Production is the economic
term used for
A.
B.
C.
D.
numbers
resources
demand
units of measurement
B
Which of the following are examples
of natural resources?
A.
B.
C.
D.
Oil
Trees
Tools
Water
A, B, D
Combing resources to make a good
or provide a service is known as
A.
B.
C.
D.
supply
production
consumption
incentive
B
___________ determines the goods
and services that are produced and
consumed.
A.
B.
C.
D.
Price
Available resource
Consumer preference
Educational level
A, B, C,
The economic principle of scarcity is
when
A.
B.
C.
D.
wants are unlimited and goods and
services are limited.
wants are limited and services are limited.
wants are unlimited and goods and
services are unlimited.
wants are limited and goods and services
are unlimited.
A
Buy one get one free!
is an example of
A.
B.
C.
D.
Scarcity
Monopoly
Incentive
Opportunity Cost
C
Scarcity leads individuals and
businesses to
A.
B.
C.
D.
produce goods without resources
give up their opportunity cost
select actions from a set of alternatives
choose between supply and demand
C
Opportunity Cost is
A.
B.
C.
D.
the same as factors of production
scarcity
supply and demand
what you give up when you make a
choice.
D
Using goods and services is known as
A.
B.
C.
D.
consumption
initiative
supply
production
A
The trade-off when a choice is made
can be
A.
B.
C.
D.
Time
Money
An item
All the above
D
The inability to satisfy all your wants
at the same time is known as
A.
B.
C.
D.
Choice
Scarcity
Factors of production
Opportunity cost
B
What determines who gets goods
and services in the market place?
A.
B.
C.
D.
Incentive
Price
Supply
production
B
What determines the price of a good
or service in the market place?
A.
B.
C.
D.
Demand only
Supply only
Supply and Demand
none
C
Supply is
A.
B.
C.
D.
the amount consumers are willing and
able to buy at a certain price.
the amount producers are willing and
able to sell at a certain price.
the price that buyers and sellers most
often agree on.
scarcity
B
Demand is
A.
B.
C.
D.
the amount consumers are willing and
able to buy at a certain price.
the amount producers are willing and
able to sell at a certain price.
the price that buyers and sellers most
often agree on.
scarcity
A
The price that buyers and sellers
most often agree on is known as
A.
B.
C.
D.
Buyer price
Seller price
Market price
Supply price
C
What is the most common
economic system used today?
A. Traditional
B. Command
C. Mixed
D. Free market
C
The law of demand states that
A.
B.
C.
The higher the price of a good or service,
the higher the demand for the service.
The higher the price of a good or service,
the lower the demand for the service.
The lower the price of a good or service,
the lower the demand for the service.
B
The law of supply states that
A.
B.
C.
The higher the price of a good or service,
the higher the supply of a good or service.
The higher the price of a good or service,
the lower the supply of a good or service.
The lower the price of a good or service,
the higher the supply of a good or service.
A
WORLD MARKET SYSTEMS
FreeMarket - Mixed - _____
Which world economic system BEST completes the world
economic systems above?
A.
B.
C.
D.
Capitalism
Limited
Command
Entrepreneurial
C
Individuals and
businesses make
decisions for private sector
Government makes
decisions for public
sector
The chart above describes what type of economy?
A. Traditional
B. Command
C. Mixed
D. Free market
C
In what type of economy is there a
balance between individuals,
businesses, and the government
making economic decisions?
A.
B.
C.
D.
Traditional
Command
Mixed
Free market
In which type of economy does the
central government own the property and
resources, and make all the economic
decisions?
A.
B.
C.
D.
Traditional
Command
Mixed
Free market
B
What type of economy does the
United States have?
A.
B.
C.
D.
Traditional
Command
Mixed
Free market
C
In the United States economic
decisions are made by
A.
B.
C.
D.
individuals
private businesses
government
all the above
D
Rivalry between producers and
sellers of goods and services is
known as
A.
B.
C.
D.
profit
competition
consumer sovereignty
free market
B
A business’s profit is
A.
B.
C.
D.
net worth minus earnings
earnings minus expenses
price per share of stock
investment divided by income
B
In the United States buyers determine
what is produced by the purchases they
make. This is known as
A.
B.
C.
D.
profit
competition
consumer sovereignty
free market
C
Which is NOT one of the three basic
business organizations in the United
States?
A.
B.
C.
D.
Enterprise
Partnership
Corporation
Sole Proprietorship
A
Which type of business organization has
two or more owners who share the
risks and the profits or losses?
A.
B.
C.
D.
Enterprise
Partnership
Corporation
Sole proprietorship
B
Only one owner
Takes all the risks
Keeps all the profits
Responsible for all the losses
Which type of business organization is
described by the list in the box above?
A.
B.
C.
D.
Enterprise
Partnership
Corporation
Sole proprietorship
D
Which type of business organization can have
any number of owners whose risk
and profit is limited to their investment?
A. Enterprise
B. Partnership
C. Corporation
D. Sole proprietorship
C
A person willing to take a risk in
order to make a profit is known
as an
A.
B.
C.
D.
apprentice
entrepreneur
administrator
enforcer
B
The savings and investments
provided by households is known as
A. financial capital
B. incentive
C. entrepreneur
D. sovereignty
A
Who in the Circular Flow collects
taxes to provide public goods and
services?
A. schools
B. households
C. businesses
D. government
D
Who in the Circular Flow owns the
resources and uses the income from the
sale of
resources to purchase products?
A. schools
B. households
C. businesses
D. government
B
The circular flow of economic activity includes
interactions between all of the
following EXCEPT
A.
B.
C.
D.
businesses
government
schools
households
C
Who in the Circular Flow uses the profit
from the sale of products to purchase
more resources?
A. schools
B. households
C. businesses
D. government
C
Banks, Savings and Loans, and Credit
Unions are examples of
A. Financial Institutions
B. Partnership
C. Public goods and services
D. Financial Capital
A
One of the main functions of financial
institutions is to
A.
B.
C.
D.
control the interest rate
make loans
print money
clear checks
B
The U.S. pursues international
trade to increase
A.
B.
C.
D.
wealth
land
wars
all the above
A
All of the following are reasons that
nations trade EXCEPT
A. to obtain goods and services they can
not produce themselves
B. to buy goods and services at a higher
cost
C. to sell goods and services to other
countries
D. to increase jobs available in their own
country
B
Financial institutions encourage
saving and investing by
A.
B.
C.
D.
paying no interest on deposits
paying interest on deposits
charging for deposits
Both B and C
B
Worldwide markets in which the
buying and selling of goods and
services by all
nations is called the
A.
B.
C.
D.
York County Economy
Virginia Economy
U.S. Economy
Global Economy
D
Financial institutions act as
A.
B.
C.
D.
bankers for the government.
a public financial institution.
intermediaries between the U.S. and Iraq.
intermediaries between savers and borrowers.
D
Advancements in ________________ have
contributed to the global flow of
information, capital, and goods and
services.
A.
B.
C.
D.
technology
communication
transportation
All the above
D