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ECONOMICS QUIZ 1
Directions:
Please write your answers neatly on the line provided. You may circle your answers as well, but I
will be grading what I read in the blank.
________1) Compare the role of government in the different economic systems. Which phrase
accurately completes the chart?
a. establishes limited regulations
b. controls society and the economy
c. makes the business plans
d. supports and regulates the economy
________2) In which economic system can individuals and groups choose how to distribute goods
and services?
a. free enterprise/market
c. socialism
b. command economy
d. communism
________3) Which economic system has the benefits of private property, economic freedom,
profit, and competition?
a. command economy
c. free enterprise/market
b. socialism
d. communism
________4) Based on the excerpt, what is one result of basing the free enterprise/market
economic system on ethics and moral principles?
a. Shoppers choose wisely among many products.
b. Businesses require very little advertising.
c. Businesses charge lower prices.
d. The economy needs only limited government regulation.
________5) In a _________________ economy, business owners are allowed to compete with
little government interference.
a. command
c. market
b. traditional
d. monarchy
________6) What is the main difference between a command and market economy?
a. supply and demand
c. competition between businesses
b. government control of production
d. availability of natural resources
________7) In a _________________ economy, the government decides how many of which
goods are produced and sets the prices.
a. command
c. market
b. traditional
d. monarchy
________8) Which type of economy do we have in the United States?
a. Command
c. Supply
b. Traditional
d. Free Enterprise
________9) Which conclusion about economic development is supported by the graph?
a. The economy of Mexico was stronger than the economy of India.
b. The value of U.S. goods and services was more than double that of China.
c. Australia exported more goods and services than the United Kingdom.
d. Brazil and the United Kingdom produced an equal amount of goods and service.
________10) _______________ is the total value of goods and services produced in a country
during a given time period.
a. Gross Domestic Product (GDP)
c. Literacy Rate
b. Scarcity
d. Supply and Demand
________11) Literacy rates in East Africa range from 38 percent in Somalia to 87 percent in
Kenya. Which generalization does this data support?
a. Locating new housing in Somalia should be easy.
b. Hiring workers for factory jobs in Kenya would be challenging.
c. Finding educated people for new jobs in Somalia could be challenging.
d. Teaching health care workers in Kenya to educate patients could be difficult.
________12) Countries with a low level of development might have all of the following except
____________.
a. poor services.
c. low literacy rate.
b. good health.
d. low life expectancy.
________13) Which of the following is not a good example of an economic indicator?
a. literacy rate
c. supply and demand
b. life expectancy
d. unemployment rate