Economics
Review Packet
Student Name: __________________________
Encore: ___________________
Date: _________
Encore: 8-1
Chapter 1 & 2
1.) Economics studies how individuals and _________________ seek to satisfy needs and wants through incentives,
choices, and the allocation of ______________ _______________.
2.) List the 4 factors of production.
a. ________________________________
b. ________________________________
c. ________________________________
d. ________________________________
3.) ____________________ ____________________ are used to produce goods and services.
4.) ____________________ ____________________ are able to recognize the need for new goods or service.
5.) ____________________ ____________________ are raw materials found in nature that are used to produce
goods.
6.) ____________________ ____________________ are people’s knowledge, efforts, and skills used to perform
task or do work.
7.) Nations use economic systems to determine how to use their _________________ resources ______________
in order to reach the primary goal of providing people with a basic ________________ ____
__________________.
8.) List the four types of economic systems.
a. ________________________________
b. ________________________________
c. ________________________________
d. ________________________________
9.) ____________________ ___________________________ are found in rural areas where _____________
govern economic decisions. These decisions are centered around the ________________ or ______________
____________________.
10.) List 2 advantages of a traditional economy.
a. ________________________________________________________________
b. ________________________________________________________________
11.) List 2 disadvantages of a traditional economy.
a. ________________________________________________________________
b. ________________________________________________________________
12.) In a ________________________ ____________________________ the government determines what, how,
and for whom goods and services are produced.
13.) In a ___________________ command economy the government makes all decisions, while in a
____________________ command some form of private business exists but the state owns the major resources.
14.) List 2 advantages of a command economy.
a. ________________________________________________________________
b. ________________________________________________________________
15.) List 2 disadvantages of a command economy.
a. ________________________________________________________________
b. ________________________________________________________________
16.) In a market economy ____________________ and ________________________ what will be goods and services
will be produced or offered, what price it will be sold for and in what quantities it will be bought.
17.) The market economy is based on the law of ____________________ and ______________________.
18.) List 2 advantages of a market economy.
a. ________________________________________________________________
b. ________________________________________________________________
19.) List 2 disadvantages of a market economy.
a. ________________________________________________________________
b. ________________________________________________________________
20.) A __________________ ___________________________ combines both the ____________________ and
_________________ economy.
21.) In a mixed economy government helps people with their ________________ while the marketplace (the
business and consumer relationship) offers ways to satisfy people’s ___________________.
22.) List 2 advantages of a mixed economy.
a. ________________________________________________________________
b. ________________________________________________________________
23.) List 2 disadvantages of a mixed economy.
a. ________________________________________________________________
b. ________________________________________________________________
Continue on Next Page!
Part III - Directions: Chose the best answer for each of the following questions.
24.) Where are traditional economies normally found?
a.
Major cities
b.
South America
c.
Rural areas
d.
None of the above
25.) In which economy type does the government determines what, how, and for whom goods and services are produced?
a.
Mixed Economy
b.
Market Economy
c.
Traditional Economy
d.
Command Economy
26.) In a traditional economy decisions are centered around what?
a.
Family or ethnic units.
b.
Business and consumers
c.
Government and consumers
d.
Market Place or Consumers
27.) Which of the following is an ADVANTAGE of a command economy?
a.
Minimal choices
b.
Less crime and poverty
c.
Fewer choices of items
d.
No incentive to produce better products or engage in entrepreneurship
28.) Which of the following is a DISADVANTAGE of a traditional economy?
a.
Technology is not used
b.
Guarantees equal standard of living for everyone
c.
Needs are provided for by the government
d.
None of the above
29.) Which is an ADVANTAGE of a traditional economy?
a.
People have specific roles
b.
Technology is not used
c.
Difficult to improve
d.
Needs are provided for by the government
30.) Which is a DISADVANTAGE of a command economy?
a.
Needs are provided for by the government
b.
Guarantees equal standard of living for everyone
c.
Less crime and poverty
d.
None of the above
31.) A market economy is based on which of the following?
a.
Law of supply and demand
b.
Law of government and consumers
c.
Neither A or B
d.
None of the above
32.) Which of the following is an ADVANTAGE of a mixed economy?
a.
Huge rift between wealthy and poor
b.
Balance of needs and wants met by government and in the marketplace
c.
Minimal choices
d.
Competition to have the best products
33.) Which of the following is an ADVANTAGE of a market economy?
a.
Minimal choices
b.
Competition to have the best products
c.
Fewer choices of items
d.
No incentive to produce better products or engage in entrepreneurship
34.) Which of the following is a DISADVANTAGE of a market economy?
a.
huge rift between wealthy and poor
b.
Minimal choices
c.
Competition to have the best products
d.
Fewer choices of items
35.) A mixed economy combines which two economy types?
a.
Command and market economy
b.
Market and Traditional
c.
Command and Traditional
d.
None of the above
36.) In a market economy who determines what goods and services will be produced or offered, what price it will be sold for and
in what quantities it will be bought?
a.
Family and ethnic unit
b.
Businesses and consumers
c.
Market Place and government
d.
Consumers and government
Continue on Next Page!
Chapter 3 & 4
Directions: Select the best answers from the options provided
1. Which of the following is a disadvantage of the stock market?
a. Stocks outperform other investments
b. Stock are worse than other investments
c. Stock prices go up and down
d. Stockholders have partial ownership in corporations.
2. Which type of businesses offer stock to investors?
a. Franchise
b. Sole Proprietorship
c. Corporation
d. Partnership
Directions: Write the correct answer to the question.
3. What are stocks?
______________________________________________________________________
4. What type of economic system does the United States (U.S.) have?
______________________________________________________________________
5. List two advantages of the U.S. economic system:
a. _____________________________________________
b. _____________________________________________
6. List two disadvantages of the U.S. economic system:
a. _____________________________________________
b. _____________________________________________
Directions: Write T if the answer is TRUE; write F if the answer is FALSE.
7. _______ In a bull market stock prices go up.
8. _______ Consumers buy goods and businesses prosper in a bear market.
9. _______ Stock prices fall or go down in a bear market.
10. _______ In a bear market consumers buy fewer goods and businesses may lose money. Some workers may lose
jobs.
11. _______The stock exchange is the actual physical location where stocks are listed and traded.
Directions: Fill in the blank with the appropriate answer.
12. The stock market is where shares of stocks, _____________, and futures are bought and sold (or traded).
13. The sale of shares of ____________ is a way for the corporations to raise money.
14. ________________ outperforms other investments.