1. SOL Review Questions
Civics & Economics #

2. CE.9a – Economic Terms
177. The inability to satisfy all wants because resources are limited –
Answer – Scarcity

3. CE.9a – Economic Terms
178. Natural, human, capital, and entrepreneurship are examples of _____________ used during production.
Answer – Resources

4. 179. The cost of what is given up when a choice is made –
CE.9a – Economic Terms
179. The cost of what is given up when a choice is made –
Answer – Opportunity Cost

5. CE.9a – Economic Terms
180. Things that incite or motivate us to buy things (Buy one, get one free) –
Answer – Incentives

6. 181. The amount of goods or services consumers want to buy –
CE.9a – Economic Terms
181. The amount of goods or services consumers want to buy –
Answer – Demand

7. 182. The amount of goods or services producers have to sell –
CE.9a – Economic Terms
182. The amount of goods or services producers have to sell –
Answer – Supply

8. 183. The interaction between supply and demand determines –
CE.9a – Economic Terms
183. The interaction between supply and demand determines –
Answer – Price

9. 184. Selecting an item from a set of possible alternatives –
CE.9a – Economic Terms
184. Selecting an item from a set of possible alternatives –
Answer – Choice

10. 185. Making goods or services – Answer – Production
CE.9a – Economic Terms
185. Making goods or services –
Answer – Production

11. 186. Using goods or services - Answer – Consumption
CE.9a – Economic Terms
186. Using goods or services -
Answer – Consumption

12. Answer – produced and consumed
CE.9a – Economic Terms
187. Consumer preferences, price, and available resources determine what is –
Answer – produced and consumed

13. 188. Private ownership of all property/resources –
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
188. Private ownership of all property/resources –
Answer – Free Market Economy

14. 189. Central ownership of property/resources (Communism) –
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
189. Central ownership of property/resources (Communism) –
Answer – Command Economy

15. 190. Government, businesses, and individuals share decision-making -
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
190. Government, businesses, and individuals share decision-making -
Answer – Mixed Economy

16. 191. Centrally-planned economy – Answer – Command Economy
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
191. Centrally-planned economy –
Answer – Command Economy

17. Answer – Both Free Market Economy and Mixed Economy
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
192. Profit, competition, consumer sovereignty, and individual choice –
Answer – Both Free Market Economy and Mixed Economy

18. 193. Government plays virtually no role in the economy –
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
193. Government plays virtually no role in the economy –
Answer – Free Market Economy

19. 194. Most common economic system in the world today –
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
194. Most common economic system in the world today –
Answer – Mixed Economy

20. 195. Lack of consumer choice – Answer – Command Economy
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
195. Lack of consumer choice –
Answer – Command Economy

21. Answer – Amount of Government Involvement
CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed)
196. What is the big difference between the different types of economy?
Answer – Amount of Government Involvement

22. CE.9c – The United States Economy
197. Businesses are allowed to operate without undue influence from the government –
Answer – Free Markets (Enterprise)

23. CE.9c – The United States Economy
198. Earnings minus expenses –
Answer – Profit

24. CE.9c – The United States Economy
199. Rivalry between producers/sellers –
Answer – Competition

25. CE.9c – The United States Economy
200. Competition results in _______ prices and _______ quality.
Answer #1 – lower
Answer #2 – better

26. CE.9c – The United States Economy
201. Businesses and individuals have the right to own _____________________.
Answer – private property

27. CE.9c – The United States Economy
202. Consumer sovereignty means buyers determine what is produced through their own ___________________________.
Answer – purchases

28. CE.10b – Economic Flow
203. Economic flow involves money continuously moving between businesses, individuals, and the _____________.
Answer – government

29. CE.10b – Economic Flow
204. Saving and investment provides capital ($$$) that can be borrowed for ______________ and _____________.
Answer #1 – expansion
Answer #2 – consumption

30. CE.10b – Economic Flow
205. Who owns resources, sell resources, and use income to purchase products?
Answer – Individuals

31. CE.10b – Economic Flow
206. Who buys resources, makes products to sell, and uses the profits to purchase more products?
Answer – Business

32. 207. Who uses tax revenue to provide public goods and services?
CE.10b – Economic Flow
207. Who uses tax revenue to provide public goods and services?
Answer – Government

33. CE.10c – Private Financial Institutions
208. Banks, savings and loans, credit unions and securities brokerages are examples of _____________________________.
Answer – Private Financial Institutions

34. CE.10c – Private Financial Institutions
209. Private financial institutions bring together ________________________.
Answer – savers and borrowers

35. CE.10c – Private Financial Institutions
210. Private financial institutions receive __________ and make _____________.
Answer #1 – deposits
Answer #2 – loans

36. CE.10c – Private Financial Institutions
211. Private financial institutions encourage saving by paying ________ on deposits.
Answer – interest

37. CE.10d – Global Economy
212. Virginia and the United States pursue international trade in order to increase _______________.
Answer – wealth

38. 213. What is the worldwide selling of goods and services?
CE.10d – Global Economy
213. What is the worldwide selling of goods and services?
Answer – Global Economy

39. CE.10d – Global Economy
214. Nations trade in order to obtain goods at a _________________ or goods they cannot ________________ themselves.
Answer #1 – lower cost
Answer #2 – produce

40. 215. Selling goods to other nations helps create _____________.
CE.10d – Global Economy
215. Selling goods to other nations helps create _____________.
Answer – new jobs

41. Answer – efficiency and growth
CE.10d – Global Economy
216. When companies in the United States specialize in producing certain goods and services it promotes _______________________________.
Answer – efficiency and growth

42. 217. Technology ___________ the cost of production.
CE.10d – Global Economy
217. Technology ___________ the cost of production.
Answer – lowers

43. CE.10d – Global Economy
218. Innovations in ___________ contribute to the global flow of capital, goods, services, and ___________________. An example is the _______________.
Answer #1 – technology
Answer #2 – information
Answer #3 – internet

44. CE.11a – Government Promotion of Competition
219. The government promotes competition by enforcing _____________ legislation to discourage the development of ______________.
Answer #1 – anti-trust
Answer #2 – monopolies

45. CE.11a – Government Promotion of Competition
220. The government promotes competition by engaging in _______________ and supporting ______________ start-ups.
Answer #1 – global trade
Answer #2 – business

46. CE.11a – Government Promotion of Competition
221. What government agency regulates radio and TV?
Answer – The FCC (Federal Communications Commission)

47. CE.11a – Government Promotion of Competition
222. What government agency regulates trade?
Answer – The FTC (Federal Trade Commission)

48. CE.11a – Government Promotion of Competition
223. What government agency regulates the environment?
Answer – The EPA (Environmental Protection Agency)

49. Answer – public goods and services
CE.11b – Public Goods
224. Highways, postal service, and national defense are examples of ___________.
Answer – public goods and services

50. CE.11b – Public Goods
225. Public goods benefit ________ people and would _________ be available if individuals had to provide them.
Answer #1 – many
Answer #2 – NOT

51. CE.11b – Public Goods
226. The government uses ________ and borrowed funds to produce public goods.
Answer – tax revenue

52. 227. What amendment authorizes the government to tax incomes?
CE.11c – Taxes
227. What amendment authorizes the government to tax incomes?
Answer – 16th Amendment

53. 228. If the government increases taxes, private spending –
CE.11c – Taxes
228. If the government increases taxes, private spending –
Answer – decreases

54. 229. If the government decreases taxes, private spending –
CE.11c – Taxes
229. If the government decreases taxes, private spending –
Answer – increases

55. 230. If the government borrows more funds, private borrowing –
CE.11c – Taxes
230. If the government borrows more funds, private borrowing –
Answer – decreases

56. 231. If the government borrows less funds, private borrowing –
CE.11c – Taxes
231. If the government borrows less funds, private borrowing –
Answer – increases

57. CE.11c – Taxes
232. If government spending increases, demand, production, and employment –
Answer – increase

58. CE.11c – Taxes
233. If government spending decreases, demand, production, and employment –
Answer – decrease

59. 234. If government spending increases, taxes –
CE.11c – Taxes
234. If government spending increases, taxes –
Answer – increase

60. 235. If government spending decreases, taxes –
CE.11c – Taxes
235. If government spending decreases, taxes –
Answer – decrease

61. CE.11d – The Federal Reserve
236. What is the central bank of the United States? What is the banker’s bank?
Answer – The Federal Reserve

62. CE.11d – The Federal Reserve
237. The Federal Reserve issues ________ and regulates the amount of money in ____________.
Answer #1 – currency
Answer #2 – circulation

63. CE.11d – The Federal Reserve
238. If the Federal Reserve restricts the money in circulation, the economy _______________.
Answer – slows down

64. CE.11d – The Federal Reserve
239. If the Federal Reserve increases the money in circulation, it _____________ the economy.
Answer – stimulates

65. CE.11d – The Federal Reserve
240. To stimulate the economy, the Federal Reserve _____ the reserve requirement or the discount rate.
Answer – lowers

66. CE.11d – The Federal Reserve
241. To slow down the economy, the Federal Reserve _____________ the reserve requirement or discount rate.
Answer – raises

67. CE.11d – The Federal Reserve
242. To help the economy grow, the Federal Reserve ______ government securities.
Answer – buys

68. CE.11d – The Federal Reserve
243. To slow down the economy, the Federal Reserve ______ government securities.
Answer – sells

69. CE.12a-d – Career Choices
244. Self-assessment is important when selecting a career and includes your ____________ and ___________.
Answer #1 – interests
Answer #2 – talents

70. 245. Employers seek employees with a strong _________________________.
CE.12a-d – Career Choices
245. Employers seek employees with a strong _________________________.
Answer – work ethic

71. 246. Your work ethic includes your ___________ and ___________.
CE.12a-d – Career Choices
246. Your work ethic includes your ___________ and ___________.
Answer #1 – attitudes
Answer #2 – behaviors

72. CE.12a-d – Career Choices
247. _____________ and ______________ along with supply and demand influence your job income.
Answer #1 – Education
Answer #2 – skills

73. CE.12a-d – Career Choices
248. Employers seek employees who have __________ with changes in technology.
Answer – kept pace

74. 249. Advances in technology create ____________ in the workplace.
CE.12a-d – Career Choices
249. Advances in technology create ____________ in the workplace.
Answer – new jobs