Released Unit 3 Econ Unit Test

In Norway, people are allowed to move from place to place to pursue new jobs. The government provides money to healthcare providers and hospitals to treat people when they are sick. People are allowed to open their own businesses freely.

Based on the passage above, Norway mostly has a _____________ economy.

In the USSR, producers were not able to make whatever they wanted. Instead, they were directed by officials from the military to only produce things that the military needed. Consumers did not have many options as a result about what they could buy. This made life very difficult in this economy.

Based on the passage above, the USSR mostly had a _____________ economy.

Mixed

Traditional

Market

Command

10. Countries with a high standard of living usually have ____________ than countries with a low standard of living.

Higher literacy rates

A lower average income

A shorter life expectancy

More exports than imports

Ethan Brown sells ready-to-eat vegetarian chicken strips. His fake chicken can be categorized as a—

Capital resource

Human resource

Good

Service

The U.S. Government allows Ethan Brown to decide the price for his fake chicken. However, the U.S. Government tells Ethan Brown that he must pay his employees a certain amount of money. Since the U.S. Government does this, which type of economy exists within the United States?

Mixed economy

Command economy

Market economy

Traditional economy

Which of the following is a characteristic of a command economy?

Producers set the price of goods and services based on supply and demand.

The government is very involved in economic decisions within the country.

The jobs performed by citizens are determined by custom and tradition.

All citizens within the country are equal, and there is a high standard of living.

Which of the following situations would create a surplus of Playstation 4s?

The equilibrium price of the Playstation 4 is $300 and Walmart sets the price at $300.

The equilibrium price of the Playstation 4 is $300 and Walmart sets the price at $400.

The equilibrium price of the Playstation 4 is $300 and Walmart sets the price at $200.

The equilibrium price of the Playstation 4 is $300 and Walmart is unwilling to sell them.

People living in Greece make an average of $26,846 per year. People living in Sweden make an average of $40,352 per year .

Which of the following comparisons of Sweden and Greece would be true?

I. People living in Greece are wealthier than people living in Sweden.

II. The standard of living of Greece is higher than the standard of living of Sweden.

III. The standard of living of Sweden is higher than the standard of living of Greece.

II only

III only

I and II only

I and III only

Countries with a low standard of living usually have __________________ than countries with a high standard of living.

Lower literacy rates

A higher average income

A higher life expectancy

More exports than imports

_______________________ is the number of good or services producers are willing and able to make or sell.

Supply

Demand

Shortage

Surplus

Which of the following would be a part of the demand for the newest iPhone on the market?

A person who has the money to make and sell iPhones and decides to put them in his store

A person who has the money to buy an iPhone but prefers to buy a phone that is an Android

A person who doesn’t have the money for an iPhone but is hoping to get one someday

A person who has the money to buy an iPhone and instantly orders one once it is available

Each of the following correctly categorizes a factor of production needed to make a pencil with an example of that factor of production EXCEPT—

The wood->a natural resource

The saw used to cut the wood->a capital resource

The person who manufactured the pencil->a capital resource

The factory used to build the pencil->a capital resource

All of the following would cause Brazil to become more like a command economy EXCEPT—

The government tells businesses to only sell their goods and services to people in Brazil

The government makes rules that force producers to make safe products for consumers

The government allows consumers to decide which goods they want to purchase

The government tells workers where they are allowed to work in order to make money

If the federal government created a law that demanded that businesses pay their employees at least $15, then the United States economy would become—

More like a market economy

More like a traditional economy

More like a specialized economy

More like a command economy

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