Unit 6 Economics America’s Market Economy Unit 6 Test Review (SOL 9)

Unit 6 Unit 6 EconomicsEconomics

America’s Market America’s Market EconomyEconomy

Unit 6 Test Review (SOL 9)

Economics is Economics is A.A. producers and consumers producers and consumers

interacting in the marketplace.interacting in the marketplace.B.B. the branches of government the branches of government

checking each other.checking each other.C.C. government and business government and business

interacting in the marketplace.interacting in the marketplace.D.D. Republicans and Democrats Republicans and Democrats

interacting in the marketplace.interacting in the marketplace.

A

Factors of ProductionFactors of Production is the is the economic term used for economic term used for

A. numbersA. numbers

B. resourcesB. resources

C. demandC. demand

D. units of measurementD. units of measurement

B

Which of the following are Which of the following are examples of natural resources?examples of natural resources?

A. OilA. OilB. TreesB. TreesC. ToolsC. ToolsD. WaterD. Water

A, B, D

Combing resources to make a Combing resources to make a good or provide a service is good or provide a service is known asknown as

A.A. supplysupply

B.B. productionproduction

C.C. consumptionconsumption

D.D. incentiveincentive

B

___________ determines the ___________ determines the goods and services that are goods and services that are produced and consumed.produced and consumed.

A.A. PricePriceB.B. Available resourceAvailable resourceC.C. Consumer preferenceConsumer preferenceD.D. Educational levelEducational level

A, B, C,

The economic principle of The economic principle of scarcityscarcity is when is when

A.A. wants are unlimited and goods and wants are unlimited and goods and services are limited.services are limited.

B.B. wants are limited and services are wants are limited and services are limited.limited.

C.C. wants are unlimited and goods and wants are unlimited and goods and services are unlimited.services are unlimited.

D.D. wants are limited and goods and wants are limited and goods and services are unlimited.services are unlimited.

A

Buy one get one free!Buy one get one free! is an example of is an example of

A.A. ScarcityScarcityB.B. MonopolyMonopolyC.C. IncentiveIncentiveD.D. Opportunity CostOpportunity Cost

C

ScarcityScarcity leads individuals and leads individuals and businesses to businesses to

A.A. produce goods without resourcesproduce goods without resources

B.B. give up their opportunity costgive up their opportunity cost

C.C. select actions from a set of select actions from a set of alternativesalternatives

D.D. choose between supply and demandchoose between supply and demand

C

Opportunity CostOpportunity Cost is is

A.A. the same as factors of productionthe same as factors of productionB.B. scarcityscarcityC.C. supply and demandsupply and demandD.D. what you give up when you make what you give up when you make

a choice.a choice.

D

Using goods and services is Using goods and services is known asknown as

A.A. consumptionconsumption

B.B. initiativeinitiative

C.C. supplysupply

D.D. productionproduction

A

The trade-off when a choice is The trade-off when a choice is made can bemade can be

A.A. TimeTime

B.B. MoneyMoney

C.C. An itemAn item

D.D. All the aboveAll the above

D

The inability to satisfy all your The inability to satisfy all your wants at the same time is known wants at the same time is known

as as

A.A. ChoiceChoiceB.B. ScarcityScarcityC.C. Factors of productionFactors of productionD.D. Opportunity costOpportunity cost

B

What determines who gets What determines who gets goods and services in the goods and services in the

market place?market place?A.A. IncentiveIncentive

B.B. PricePrice

C.C. SupplySupply

D.D. productionproduction

B

What determines the price of a What determines the price of a good or service in the market good or service in the market

place?place?

A.A. Demand onlyDemand only

B.B. Supply onlySupply only

C.C. Supply and DemandSupply and Demand

D.D. nonenone

C

Supply isSupply is

A.A. the amount consumers are willing the amount consumers are willing and able to buy at a certain price.and able to buy at a certain price.

B.B. the amount producers are willing the amount producers are willing and able to sell at a certain price.and able to sell at a certain price.

C.C. the price that buyers and sellers the price that buyers and sellers most often agree on.most often agree on.

D.D. scarcity scarcity

B

Demand isDemand isA.A. the amount consumers are willing the amount consumers are willing

and able to buy at a certain price.and able to buy at a certain price.B.B. the amount producers are willing the amount producers are willing

and able to sell at a certain price.and able to sell at a certain price.C.C. the price that buyers and sellers the price that buyers and sellers

most often agree on.most often agree on.D.D. scarcity scarcity

A

The price that buyers and sellers The price that buyers and sellers most often agree on is known asmost often agree on is known as

A.A. Buyer priceBuyer price

B.B. Seller priceSeller price

C.C. Market priceMarket price

D.D. Supply priceSupply price

C

What is the most common What is the most common economic system used economic system used

today?today?

A. Traditional A. Traditional

B. CommandB. Command

C. MixedC. Mixed

D. Free D. Free marketmarket C

The law of demand states The law of demand states thatthat

A.A. The The higherhigher the price of a good or service, the price of a good or service, the the higherhigher the demand for the service. the demand for the service.

B.B. The The higherhigher the price of a good or service, the price of a good or service, the the lowerlower the demand for the service. the demand for the service.

C.C. The The lowerlower the price of a good or service, the price of a good or service, the the lowerlower the demand for the service. the demand for the service.

B

The law of supply states thatThe law of supply states that

A.A. The The higherhigher the price of a good or service, the price of a good or service, the the higherhigher the supply of a good or service. the supply of a good or service.

B.B. The The higherhigher the price of a good or service, the price of a good or service, the the lowerlower the supply of a good or service. the supply of a good or service.

C.C. The The lowerlower the price of a good or service, the the price of a good or service, the higherhigher the supply of a good or service. the supply of a good or service.

A

WORLD MARKET SYSTEMSWORLD MARKET SYSTEMSFreeMarket - Mixed - _____FreeMarket - Mixed - _____

Which world economic system BEST completes the world Which world economic system BEST completes the world economic systems above?economic systems above?

A. CapitalismA. Capitalism

B. LimitedB. Limited

C. CommandC. Command

D. EntrepreneurialD. EntrepreneurialC

Individuals andIndividuals andbusinesses makebusinesses makedecisions for private decisions for private sectorsector

A. TraditionalA. Traditional


C. MixedC. Mixed

D. Free D. Free marketmarket

Government makes decisions for public sector

The chart above describes what type of economy?

C

In what type of economy is there In what type of economy is there a balance between a balance between

individuals, businesses, and individuals, businesses, and the government making the government making

economic decisions?economic decisions?



C. MixedC. Mixed

D. Free marketD. Free market

C

In which type of economy does the In which type of economy does the central government own the central government own the

property and resources, and make property and resources, and make

all the economic decisions?all the economic decisions?



C. MixedC. Mixed

D. Free marketD. Free market B

What type of economy does What type of economy does the United States have?the United States have?



C. MixedC. Mixed

D. Free D. Free marketmarket C

In the United States In the United States economic decisions are economic decisions are

made bymade by

A. individualsA. individuals

B. private B. private businessesbusinesses

C. governmentC. government

D. all the aboveD. all the aboveD

Rivalry between producers and Rivalry between producers and sellers of goods and services is sellers of goods and services is

known asknown as

A. profitA. profit

B. competitionB. competition

C. consumer C. consumer sovereigntysovereignty

D. free marketD. free market B

A business’s profit is A business’s profit is

A. net worth minus earningsA. net worth minus earnings

B. earnings minus expensesB. earnings minus expenses

C. price per share of stockC. price per share of stock

D. investment divided by D. investment divided by incomeincome B

In the United States buyers In the United States buyers determine what is produced by the determine what is produced by the

purchases they purchases they make. This is known as make. This is known as

A. profitA. profit

B. competitionB. competition

C. consumer C. consumer sovereigntysovereignty

D. free marketD. free marketC

Which is Which is NOTNOT one of the three one of the three basic business organizations in basic business organizations in

the United States? the United States?

A. EnterpriseA. Enterprise

B. PartnershipB. Partnership

C. CorporationC. Corporation

D. Sole D. Sole ProprietorshipProprietorship

A

Which type of business organization Which type of business organization has two or more owners who has two or more owners who

share the risks and the profits or share the risks and the profits or losses?losses?

A. Enterprise A. Enterprise



D. Sole proprietorshipD. Sole proprietorshipB




D. Sole proprietorshipD. Sole proprietorship

Only one ownerTakes all the risksKeeps all the profitsResponsible for all the losses

Which type of business organization is described by the list in the box above?

D

Which type of business organization can Which type of business organization can have any number of owners whose risk have any number of owners whose risk

and profit is limited to their and profit is limited to their

investment?investment?




D. Sole D. Sole proprietorshipproprietorship

C

A person willing to take a risk A person willing to take a risk in order to make a profit is in order to make a profit is

known as anknown as an

A. apprentice A. apprentice

B. entrepreneur B. entrepreneur

C. administrator C. administrator

D. enforcerD. enforcer

B

The savings and investments The savings and investments provided by households is provided by households is

known asknown as

A. financial A. financial capitalcapital

B. incentiveB. incentive

C. entrepreneurC. entrepreneur

D. sovereigntyD. sovereigntyA

Who in the Circular Flow collects Who in the Circular Flow collects taxes to provide public goods taxes to provide public goods

and services?and services?

A. schoolsA. schools

B. householdsB. households

C. businessesC. businesses

D. governmentD. government D

Who in the Circular Flow owns the Who in the Circular Flow owns the resources and uses the income from resources and uses the income from

the sale of the sale of resources to purchase products? resources to purchase products?




D. D. governmengovernment t B

The circular flow of economic activity The circular flow of economic activity includes interactions between all of the includes interactions between all of the

following following EXCEPTEXCEPT

A. businessesA. businesses

B. government B. government

C. schoolsC. schools

D. householdsD. households

C

Who in the Circular Flow uses the Who in the Circular Flow uses the profit from the sale of products to profit from the sale of products to purchase more resources?purchase more resources?




D. governmentD. government

C

Banks, Savings and Loans, and Banks, Savings and Loans, and Credit Unions are examples of Credit Unions are examples of

A. Financial InstitutionsA. Financial Institutions


C. Public goods and servicesC. Public goods and services

D. Financial CapitalD. Financial Capital

A

One of the main functions of One of the main functions of financial institutions is tofinancial institutions is to

A. control the interest A. control the interest rate rate

B. make loans B. make loans

C. print moneyC. print money

D. clear checksD. clear checks

B

The U.S. pursues The U.S. pursues international trade to international trade to

increase increase

A. wealthA. wealth

B. land B. land

C. warsC. wars

D. all the D. all the aboveabove

A

All of the following are reasons All of the following are reasons that nations trade that nations trade EXCEPTEXCEPT

A. to obtain goods and services they A. to obtain goods and services they can not produce themselvescan not produce themselves

B. to buy goods and services at a B. to buy goods and services at a higher costhigher cost

C. to sell goods and services to other C. to sell goods and services to other countriescountries

D. to increase jobs available in their D. to increase jobs available in their own countryown country

B

Financial institutions Financial institutions encourage saving and encourage saving and

investing byinvesting by

A. paying no interest on A. paying no interest on depositsdeposits

B. paying interest on depositsB. paying interest on deposits

C. charging for depositsC. charging for deposits

D. Both B and CD. Both B and C

B

Worldwide markets in which the Worldwide markets in which the buying and selling of goods and buying and selling of goods and

services by all services by all nations is called the nations is called the

A. York County EconomyA. York County Economy

B. Virginia EconomyB. Virginia Economy

C. U.S. EconomyC. U.S. Economy

D. Global EconomyD. Global EconomyD

Financial institutions act as Financial institutions act as

A. bankers for the government.A. bankers for the government.

B. a public financial institution. B. a public financial institution.

C. intermediaries between the U.S. and Iraq.C. intermediaries between the U.S. and Iraq.

D. intermediaries between savers and D. intermediaries between savers and borrowers.borrowers.

D

Advancements in ________________ Advancements in ________________ have contributed to the global flow of have contributed to the global flow of

information, capital, and goods information, capital, and goods and services.and services.

A. technologyA. technology

B. communicationB. communication

C. transportationC. transportation

D. All the aboveD. All the above

D

Unit 6 Economics America’s Market Economy Unit 6 Test Review (SOL 9)

Documents

Transcript of Unit 6 Economics America’s Market Economy Unit 6 Test Review (SOL 9)