Economics

1stQuarterly Assessment

Name: ______

Date: ______Class: ______

Directions: Circle the choice that best answers the following questions

  1. In economics, “needs” refer to ______.
  1. The basic, minimal things people must have to survive.
  2. Things that people do not have.
  3. Luxuries such as new televisions, computers, and DVDs.
  4. A good education and adequate health care.
  1. Scarcity of resources is always present because:
  1. There will always be natural disasters to affect the production of goods and services.
  2. We live in a world where poverty still exists.
  3. People are not willing to change their unlimited wants.
  4. Competing alternative uses for resources always exist.
  1. The main factors necessary for the production of goods and services are ______.
  1. Land, labor, capital, and services.
  2. Capital, land, entrepreneurship, and labor
  3. Labor, capital, land, and natural resources
  4. Human resources, labor, capital, and land
  1. If your city made a trade-off to spend $1 million on a recycling facility instead of a fitness and health center the opportunity cost of a cleaner environment would be ______.
  1. Fewer employed people
  2. Less garbage to dispose of
  3. Fewer colleges and universities
  4. Fewer fit and healthy people.
  1. A production possibilities curve is used by economists to show ______.
  1. People and business how much of each item to produce.
  2. The maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time.
  3. The trade offs and opportunity costs of producing possible combinations of goods’
  4. All of the above
  1. In a ______economy, a central authority makes most of the WHAT, HOW, and FOR WHOM decisions.
  1. Traditional
  2. Command
  3. Market
  4. Free Enterprise
  1. One advantage of a ______economy is that it gradually adjusts to change over time.
  1. Traditional
  2. Command
  3. Market
  4. Socialist
  1. Name three economic needs and explain their importance? ______
  1. The Inuit people are an example of a traditional economy, because they teach their children how to farm, hunt, gather, and other traditional survival skills that have been taught for generations.What are some of the major drawbacks of a Traditional Economy? Explain ______
  2. When government seeks to protect Americans from adverse economic events such as layoffs and illnesses, it is trying to achieve the economic goal of ______.
  1. Full employment
  2. Economic security
  3. Economic growth
  4. Economic equity
  1. Look at the chart below to answer the following question.

Based on the above economic model, what do you believe will happen to the production of Ethanol in 2010? ______

  1. Increase
  2. Decrease
  3. Remain the Same
  1. Which of the following statements is NOT true about the use of economic models?
  1. Economic models can simulate what would happen in the real world given certain economic circumstances.
  2. There may be many economic models for a particular problem.
  3. Economists use economic models to make value judgments about economic decisions.
  4. Economic models cannot predict all the factors that might influence people’s behavior.
  1. Economists do not all agree on the same solutions to problems because ______.
  1. They have differing opinions, beliefs, and social views.
  2. Their views are dictated by their governments.
  3. They deal with facts, and the facts change.
  4. Individual human behavior is not always predictable.
  1. The fundamental economic problem is ______.
  1. Opportunity cost
  2. Scarcity
  3. Capital
  4. Entrepreneurship
  1. The United States has a ______economy.
  1. Traditional
  2. Command
  3. Mixed
  4. Socialist
  1. ______is the extent to which persons of organizations are better off at the end of a period.
  1. Profit
  2. Loss
  3. Breakeven
  4. None of the Above
  1. ______is the struggle among sellers to attract consumers while lowering costs.
  1. Fairness
  2. Competition
  3. Monopoly
  4. Consumer Awareness
  1. The most common form of business organization in the United States is the ______, a business owned and run by one person.
  1. Corporation
  2. Partnership
  3. Franchise
  4. Sole Proprietorship
  1. A ______is a business jointly owned by two or more persons. This is the least numerous form of business organization, accounting for the smallest proportion of sales and net income.
  1. Corporation
  2. Partnership
  3. Multinational
  4. Proprietorship
  1. A ______is a form of business organization recognized by law as a separate legal entity having all the rights of an individual. It has the right to buy and sell property, enter into legal contracts, and sue and be sued.
  1. Proprietorship
  2. Partnership
  3. Corporation
  4. Conglomerate
  1. A business can expand by engaging in a ______, a combination of two or more businesses to form a single firm.
  1. Merger
  2. Proprietorship
  3. Partnership
  4. Dissolution
  1. A ______takes place when two or more firms that produce the same kind of product join forces.
  1. Vertical merger
  2. Horizontal merger
  3. Diagonal merger
  4. Circular merger
  1. A ______takes place when firms involved in different steps of manufacturing or marketing come together.
  1. Vertical merger
  2. Horizontal merger
  3. Diagonal merger
  4. Circular merger
  1. "[This bill is] for the especial purpose of bringing about in said Tennessee drainage basin and adjoining territory … the maximum amount of flood control; the maximum development… for navigation purposes; the maximum generation of electric power consistent with flood control and navigation; the proper use of marginal lands; the proper method of reforestation … and the economic and social well-being of the people living in said river basin; and to provide for the national defense.”
    --Franklin Delano Roosevelt(1882-1945), U.S. president, as he signed the TVA Act, May 18, 1933.

From the passage above that establishes the TVA, a______operates in a businesslike way to promote the collective interests of its members rather than to seek financial gain for its owners.

  1. Proprietorship
  2. Corporation
  3. Multinational
  4. Nonprofit Organization.
  1. The Tennessee Valley Authority is an example of ______.
  1. Government’s direct role in the economy
  2. Government’s indirect role in the economy
  3. A vertical merger
  4. A horizontal merger
  1. ______is the sum of the skills, abilities, health, and motivation of people.
  1. Cash Capital
  2. Human Population
  3. Human Capital
  4. Land Use
  1. State how people and businesses benefit from economic freedom? ______
  1. What are regulations and why are they necessary in business? ______
  1. What does the IMF do and when was it founded? ______