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

Economics is 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. numbers B. resources C. demand D. units of measurement B

Which of the following are examples of natural resources? A. Oil B. Trees C. Tools D. Water A, B, D

Combing resources to make a good or provide a service is known as supply production consumption incentive B

___________ determines the goods and services that are produced and consumed. Price Available resource Consumer preference Educational level A, B, C,

The economic principle of scarcity is when 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 Scarcity Monopoly Incentive Opportunity Cost C

Scarcity leads individuals and businesses to 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 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 consumption initiative supply production A

The trade-off when a choice is made can be Time Money An item All the above D

The inability to satisfy all your wants at the same time is known as Choice Scarcity Factors of production Opportunity cost B

What determines who gets goods and services in the market place? Incentive Price Supply production B

What determines the price of a good or service in the market place? Demand only Supply only Supply and Demand none C

Supply is 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 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 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 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 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. Capitalism B. Limited C. Command D. 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. Traditional B. Command C. Mixed D. Free market C

B A. Traditional B. Command C. Mixed D. Free market In which type of economy does the central government own the property and resources, and make all the economic decisions? A. Traditional B. Command C. Mixed D. Free market B

What type of economy does the United States have? A. Traditional B. Command C. Mixed D. Free market C

In the United States economic decisions are made by A. individuals B. private businesses C. government D. all the above D

Rivalry between producers and sellers of goods and services is known as A. profit B. competition C. consumer sovereignty D. free market B

B A business’s profit is A. net worth minus earnings B. earnings minus expenses C. price per share of stock D. investment divided by income B

In the United States buyers determine what is produced by the purchases they make. This is known as A. profit B. competition C. consumer sovereignty D. free market C

Which is NOT one of the three basic business organizations in the United States? A. Enterprise B. Partnership C. Corporation D. Sole Proprietorship A

Which type of business organization has two or more owners who share the risks and the profits or losses? A. Enterprise B. Partnership C. Corporation D. Sole proprietorship B

D A. Enterprise B. Partnership C. Corporation D. Sole proprietorship 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. Enterprise B. Partnership C. Corporation D. Sole proprietorship D

C A. Enterprise B. Partnership C. Corporation D. Sole proprietorship 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. apprentice B. entrepreneur C. administrator D. 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

C A. businesses B. government C. schools D. households The circular flow of economic activity includes interactions between all of the following EXCEPT A. businesses B. government C. schools D. 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. control the interest rate B. make loans C. print money D. clear checks B

The U.S. pursues international trade to increase A. wealth B. land C. wars D. 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. paying no interest on deposits B. paying interest on deposits C. charging for deposits D. Both B and C B

Worldwide markets in which the buying and selling of goods and services by all nations is called the A. York County Economy B. Virginia Economy C. U.S. Economy D. Global Economy D

Financial institutions act as A. bankers for the government. B. a public financial institution. C. intermediaries between the U.S. and Iraq. D. intermediaries between savers and borrowers. D

Advancements in ________________ have contributed to the global flow of information, capital, and goods and services. A. technology B. communication C. transportation D. All the above D

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