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    Chapter 2 Quiz

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    Chapter 2 Quiz

    Uploaded by

    api-248807284
    408 views3 pages

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    chapter 2 quiz

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    408 views3 pages

    Chapter 2 Quiz

    Uploaded by

    api-248807284

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Economics Unit 1: Foundations Chapter 2 Quiz: Economic Systems

    Name: ______________________________ Date: _____________________ Hr: ______

    Part 1: Multiple Choice _____ 1. Which of the following is a key economic question faced by countries? A. B. C. D. How large should the nations army be? How much money should the government raise in taxes? How many schools should be built to provide education? What goods and services should be produced by firms and the government?

    _____ 2. In a traditional economy, economic decisions are based largely on: A. science B. custom C. technology D. climate

    _____ 3. A market exists to allow us to: A. B. C. D. get the very highest price possible for all that we sell. get the very lowest price possible for all that we buy. sell the most goods we possibly can. exchange the things we have for the things we need.

    _____ 4. Competition and self-interest are two important forces in: A. free market economies. B. traditional economies. C. centrally planned economies. D. socialist and communist economies.

    _____ 5. Which economic goals are best promoted by the free market? A. Efficiency and equity. B. Efficiency and freedom. C. Innovation and security. D. Freedom and security.

    _____ 6. Which is true of the government in a centrally planned (command) economy? A. B. C. D. It builds every house in every village. It encourages workers to innovate. It makes all the important economic decisions. It places much emphasis on the production of consumer goods.

    _____ 7. Socialists believe that economic equality is only possible if: A. everyone makes the same amount of money. B. the public controls the economy. C. medical care is free. D. no one has to pay taxes.

    _____ 8. The former Soviet Union was an example of a communist country where: A. B. C. D. individual freedom was encouraged. free enterprise was encouraged. consumers had many choices. most economic and political power was controlled by the government.

    _____9. Which of the following countries has the most extreme example of a centrally planned (command) economy? A. North Korea B. Cuba C. Russia D. China

    _____ 10. The free enterprise system of the United States is best described as a: A. free market economy. B. centrally planned economy. C. mixed economy with limited government intervention and a great deal of economic freedom. D. mixed economy with equal amounts of economic freedom and government intervention.

    Part 2: Vocabulary Matching A. Allocative efficiency B. Consumer sovereignty C. Laissez-faire D. Opportunity cost E. Scarcity F. Standard of living

    _____ 11. Resources that are limited, valued and have alternative uses. _____12. The next best alternative that must be given up as a result of a choice. _____ 13. The level of prosperity of a nations people. _____ 14. The doctrine that states people should be able to do as they please. _____ 15. The power of the consumer to decide what gets produced. _____ 16. The distribution of resources to a point where it is not possible to benefit one person with trade without making someone else worse off.

    Part 3: Fill-in-the-Blank: Allocation Mechanism Write the type of allocation method each example represents. Choose from the following: random allocation; market allocation; first-come, first-served allocation; or government allocation. 17. ______________________________ Winning a lottery. 18. ______________________________ The high bidder at an auction gets a valuable painting. 19. ______________________________ The mayor of a city decides who will be hired. 20. ______________________________ Students at Big Football U can park on campus without charge, but there arent enough parking spaces for all.

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