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Economics Study Guide
1.
A product of the earth (gift of nature) that people use to meet their needs is a ___________
2. The number limit on how many items of a particular product can be imported from a particular
country is a ____________
3. The economic system of communist countries is most closely related to is ________________
4. What are the three basic questions that all economic systems must answer?
5. Which term best describes an economic system in which the people-not the government-owns
and, factories, and businesses. ________________________________
6. A market economy is very different from a command economic system or a traditional system.
Which of the following is found in a market economy?
a. Free labor
c. competition between businesses
b. Government control of industry
d. Government control of agriculture.
7. In order to produce a good or a service, four factors of production are needed—natural
resources (land), human resources (labor), capital resources (buildings and machinery), and
entrepreneurship (organization).
A sixth-grade class decides to open a popcorn stand. The stand and the popcorn popper are examples of
which factor of production?
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Economics Study Guide
8.
Which type of economy would you say that Cuba is most like based on the continuum?
9.
Why are most modern economies referred to as mixed economies?
a. POVERTY IS ALWAYS HIGHEST IN COUNTRIES WITH MARKET ECONOMIES
b. GOVERNMENT PLANNERS DO NOT KNOW HOW TO HANDLE ECOMIC PROBLEMS
c. PRODUCTS MADE BY TRADITIONAL ECONOMIES HAVE NO MARKETS IN THE MODERN
WORLD
d. MOST COUNTRIES HAVE ASPECTS OF ALL THREE ECONOMIC TYPES AT WORK IN THEIR
ECONOMIES.
10. Why do most economies in the world today operate somewhere in between a market economy
and a command economy?
a. Government control always makes a market economy profitable
b. Most consumers prefer government control to a free market system
c. Government control of some aspects of the economy has never been successful in the
modern world.
d. Most economies have found they need a mix of free market and some government
control to be successful and protect consumers.
11. What is the definition of gross domestic product? (GDP)
12. Which trade barrier sets up a complete ban on trading between countries?
13. There are no truly pure market economic systems, but which country is close?
14. How are goods and services exchanged in a traditional economy?
15. What is an example of a physical trade barrier?
16. Which of the following BEST describes a market system?
a. The government provides services, such as telephones and television.
b. A person can start any legal business and charge any price.
c. The government provides food and housing to all workers.
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Economics Study Guide
d. Businesses are owned by the government.
17. Why is it important for a country to invest in human capital?
a. A country needs money in order to pay its workers.
b. Workers enjoy getting extra training and job opportunities.
c. Businesses cannot do all the training needed by workers to be successful.
d. A country’s economy is more successful when workers have good education and health
care.
18. What is an entrepreneur?
19. How does a country’s literacy rate affect its standard of living?
20. Most democratic countries have ______________________________economies.
21. What is the main reason for people to exchange currency?
22. This is an economic system where people follow the occupation of their ancestors.
23. What are the four factors of production? Give an example for each one.
24. Which word has the same meaning as the economic term, “tariff”?
25. When a government decides to increase a tariff, it increases the amount of a tax placed upon
a. A people’s income
c. renewable resources
b. Imported goods
d. people’s property
26. Which is an example of a company investing in capital goods?
a. Providing health care for workers
b. Providing classes for workers to learn new skills
c. Keeping an old machine to see if it will last longer
d. Buying new computers to build products more quickly
Name: _____________________________________________Date:_____________
Economics Study Guide