Test, Economic System

Question 1

Who calculates the Gross Domestic Product?
A) Chase Manhattan Bank
B) New York Stock Exchange
C) economists in the United States
D) economists all over the world

Answer 1

D) economists all over the world

Question 2

What term applies to the cars that Japan sells to the United States?
A) tariff-free exports to the United States
B) imports to Japan
C) exports to the United States
D) exports to Japan

Answer 2

C) exports to the United States

Question 3

Which statement applies to the bananas that Brazil sells to other countries?
A) Bananas are exported to other countries.
B) Bananas are imported to Brazil.
C) Bananas are an illegal export to other countries.
D) Bananas are an illegal import to Brazil.

Answer 3

A) Bananas are exported to other countries.

Question 4

Goods that people buy for their own personal use are \_\_\_\_\_\_\_\_\_\_\_.
A) national exports
B) government purchases
C) consumer or household purchases
D) business purchases

Answer 4

C) consumer or household purchases

Question 5

Which is likely to increase, now that China is becoming a free-enterprise system?
A) Gross Domestic Product
B) use of rationing
C) natural resources
D) scarcity

Answer 5

A) Gross Domestic Product

Question 6

Which kind of economy usually lacks technology?
A) socialist
B) traditional
C) command
D) market

Answer 6

B) traditional

Question 7

What kind of economy has consumers deciding what products will be bought?
A) traditional
B) command
C) market
D) feudal

Answer 7

C) market

Question 8

What affects Japan’s ability to produce food?
A) physical geography
B) unreasonable demand
C) equilibrium pricing
D) foreign exchange

Answer 8

A) physical geography

Question 9

In 1991, which country in the Eastern world switched to a free-enterprise system where
economic decisions are made by producers and consumers?
A) Japan
B) China
C) United States
D) Russia

Answer 9

D) Russia

Question 10

What term applies to the idea that Japan does not have very much land for agriculture?
A) scarcity
B) abundance
C) opportunity cost
D) demand

Answer 10

A) scarcity

Question 11

What is the total dollar value of final goods and services produced in a nation in one
year?
A) profit incentive
B) mass production
C) opportunity cost
D) Gross Domestic Product

Answer 11

D) Gross Domestic Product

Question 12

Which sentence is a definition of a business purchase?
A) A business purchase is made to produce other goods or services to make a profit.
B) A business purchase is made to produce goods that are discontinued.
C) A consumer purchases goods in scare supply.
D) A consumer purchase is made to produce other goods that can be sold.

Answer 12

A) A business purchase is made to produce other goods or services to make a profit.

Question 13

What is the role of an economist?
A) to study the physical geography of a nation
B) to study the production, distribution, and consumption of goods and services
C) to collect tariffs on goods that are exported to foreign nations
D) to manufacture a product that is sold in a market economy

Answer 13

B) to study the production, distribution, and consumption of goods and services

Question 14

In which type of economy are luxury items most common?
A) command
B) market
C) traditional
D) socialist

Answer 14

B) market

Question 15

Karl Marx is associated with which type of economy?
A) free-enterprise
B) market
C) command
D) traditional

Answer 15

C) command

Question 16

In a traditional society, who determines how production will be accomplished?
A) producer
B) consumer
C) tribal leader
D) government

Answer 16

C) tribal leader

Question 17

Which group demands high quality products and low prices for their wants and needs?
A) consumers in a market economy
B) producers in a market economy
C) consumers in a command economy
D) producers in a command economy

Answer 17

A) consumers in a market economy

Question 18

In what type of economy are major decisions made by the government?
A) free-enterprise
B) market
C) command
D) traditional

Answer 18

C) command

Question 19

What is the purpose of the foreign exchange markets?
A) They buy and sell domestic currency so that national trade is organized and money is easily
exchanged.
B) They buy and sell foreign currency so that international trade is organized and money is easily
exchanged.
C) They impose tax on all imports so that they can make a profit.
D) They import and export goods in order to control the exchange market.

Answer 19

B) They buy and sell foreign currency so that international trade is organized and money is easily
exhanged.

Question 20

What group supplies the goods and services for a profit?
A) consumers in a market economy
B) producers in a market economy
C) consumers in a traditional economy
D) producers in a traditional economy

Answer 20

B) producers in a market economy