Chapter and Unit Tests
CONTENTS
Chapter 1 ......................................................... 1
Chapter 2 ......................................................... 3
Chapter 3 ......................................................... 5
Chapter 4 ......................................................... 7
Unit 1 ................................................................ 9
Chapter 5 ......................................................... 13
Chapter 6 ......................................................... 15
Chapter 7 ......................................................... 17
Chapter 8 ......................................................... 19
Chapter 9 ......................................................... 21
Unit 2 ................................................................ 23
Chapter and Unit Tests, Instructor’s Edition iii
®
© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 10 ....................................................... 27
Chapter 11 ....................................................... 29
Chapter 12 ....................................................... 31
Chapter 13 ....................................................... 33
Chapter 14 ....................................................... 35
Unit 3 ................................................................ 37
Chapter 15 ....................................................... 41
Chapter 16 ....................................................... 43
Chapter 17 ....................................................... 45
Chapter 18 ....................................................... 47
Chapter 19 ....................................................... 49
Chapter 20 ....................................................... 51
Unit 4 ................................................................ 63
iv Chapter and Unit Tests, Instructor’s Edition
®
© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Name _______________________________ Class _____________________ Date ____________________
Chapter 1 Test Economic Decisions and Systems
Part 1 True or False (3 points each)
Directions Place a T for True or an F for False in the Answers column to show
whether each of the following statements is true or false. Answers
1. Your needs and wants never end. 1. T
2. Products and money used in the production of goods and services are called natural 2. F
resources.
3. The mismatch of unlimited wants and needs and limited economic resources is called the 3. T
basic economic problem.
4. The first step in the economic decision-making process is to evaluate the advantages and 4. F
disadvantages of each choice.
5. The United States could best be characterized as a command economy. 5. F
6. The right of private property means you can own, use, or dispose of things of value. 6. T
7. In a market economy, buying decisions are made by consumers. 7. T
8. If heavy competition for a product keeps its price low, businesses will be very motivated to 8. F
offer the product for sale.
9. If many consumers want a particular service, its price will probably go up. 9. T
10. The higher the price, the higher the producer’s profits. 10. F
Part 2 Multiple Choice (3 points each)
Directions In the Answers column, write the letter that represents the word, or
group of words, that correctly completes the statement or answers the question. Answers
11. All of the following is a need EXCEPT (a) food and shelter (b) clothing (c) fine jewelry 11. C
(d) clean air.
12. The means through which goods and services are produced are called (a) economic 12. A
resources (b) needs (c) spending opportunities (d) economic choices.
13. All of the following is a capital resource EXCEPT (a) a pickup truck (b) a factory (c) lumber 13. D
(d) employees.
14. The value of the next-best alternative that you did not choose is called (a) trade-off cost 14. C
(b) scarcity (c) opportunity cost (d) economic cost.
15. When a country decides to focus on advanced technology and a skilled labor force, it is 15. B
primarily answering which of the basic economic questions? (a) What to produce? (b) How
to produce? (c) Which needs to satisfy? (d) Which wants to satisfy?
16. Personal economic freedom is most limited in a (a) command economy (b) market economy 16. A
(c) mixed economy (d) traditional economy.
17. Which of the following is NOT characteristic of capitalism? (a) freedom of choice 17. B
(b) government ownership of resources (c) the profit motive (d) competition among
businesses
18. Which of the following is a consumer? (a) a business (b) an individual (c) the government 18. D
(d) all of the above are consumers
Chapter and Unit Tests, Instructor’s Edition 1
®
© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, 19. The quantity of a good or service that consumers are willing and able to buy is called 19. C
(a) supply (b) an economic want (c) demand (d) an economic amount.
20. In which of the following situations is demand MOST likely to be reduced? (a) customers 20. A
see a number of products they believe will satisfy a need (b) customers cannot find a good
substitute for a product they want (c) prices for a popular product are reduced (d) all of the
above tend to reduce demand
Part 3 Matching (2 points each)
Directions In the Answers column match the following terms with their definition.
A. needs F. goods
B. services G. trade-off
C. scarcity H. producers
D. natural resources I. wants
E. consumers J. human resources
Answers
21. Things that add comfort and pleasure to your life. 21. I
22. People producing goods and services. 22. J
23. Things that are required in order to live. 23. A
24. Things that you can see and touch. 24. F
25. When you give up something to have something else. 25. G
26. Those who determine which products and services will be available for sale. 26. H
27. Raw materials supplied by nature. 27. D
28. Not having enough resources to satisfy every need. 28. C
29. Things that are intangible and have no physical characteristics. 29. B
30. Those who buy and use goods and services. 30. E
Part 4 Fill in the Blank (4 points each)
Directions Fill in the word or phrase that best completes each statement.
31. Economic resources are sometimes referred to as factors of production.
32. The process of choosing which wants, among several options, will be satisfied is called economic
decision making.
33. In a(n) traditional economy, goods and services are produced the way they have always been produced.
34. The rivalry among businesses to sell their goods and services is called competition.
35. The point at which supply and demand are equal is called the market price.
2 Chapter and Unit Tests, Instructor’s Edition
®
© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
CONTENTS
Chapter 1 ......................................................... 1
Chapter 2 ......................................................... 3
Chapter 3 ......................................................... 5
Chapter 4 ......................................................... 7
Unit 1 ................................................................ 9
Chapter 5 ......................................................... 13
Chapter 6 ......................................................... 15
Chapter 7 ......................................................... 17
Chapter 8 ......................................................... 19
Chapter 9 ......................................................... 21
Unit 2 ................................................................ 23
Chapter and Unit Tests, Instructor’s Edition iii
®
© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 10 ....................................................... 27
Chapter 11 ....................................................... 29
Chapter 12 ....................................................... 31
Chapter 13 ....................................................... 33
Chapter 14 ....................................................... 35
Unit 3 ................................................................ 37
Chapter 15 ....................................................... 41
Chapter 16 ....................................................... 43
Chapter 17 ....................................................... 45
Chapter 18 ....................................................... 47
Chapter 19 ....................................................... 49
Chapter 20 ....................................................... 51
Unit 4 ................................................................ 63
iv Chapter and Unit Tests, Instructor’s Edition
®
© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Name _______________________________ Class _____________________ Date ____________________
Chapter 1 Test Economic Decisions and Systems
Part 1 True or False (3 points each)
Directions Place a T for True or an F for False in the Answers column to show
whether each of the following statements is true or false. Answers
1. Your needs and wants never end. 1. T
2. Products and money used in the production of goods and services are called natural 2. F
resources.
3. The mismatch of unlimited wants and needs and limited economic resources is called the 3. T
basic economic problem.
4. The first step in the economic decision-making process is to evaluate the advantages and 4. F
disadvantages of each choice.
5. The United States could best be characterized as a command economy. 5. F
6. The right of private property means you can own, use, or dispose of things of value. 6. T
7. In a market economy, buying decisions are made by consumers. 7. T
8. If heavy competition for a product keeps its price low, businesses will be very motivated to 8. F
offer the product for sale.
9. If many consumers want a particular service, its price will probably go up. 9. T
10. The higher the price, the higher the producer’s profits. 10. F
Part 2 Multiple Choice (3 points each)
Directions In the Answers column, write the letter that represents the word, or
group of words, that correctly completes the statement or answers the question. Answers
11. All of the following is a need EXCEPT (a) food and shelter (b) clothing (c) fine jewelry 11. C
(d) clean air.
12. The means through which goods and services are produced are called (a) economic 12. A
resources (b) needs (c) spending opportunities (d) economic choices.
13. All of the following is a capital resource EXCEPT (a) a pickup truck (b) a factory (c) lumber 13. D
(d) employees.
14. The value of the next-best alternative that you did not choose is called (a) trade-off cost 14. C
(b) scarcity (c) opportunity cost (d) economic cost.
15. When a country decides to focus on advanced technology and a skilled labor force, it is 15. B
primarily answering which of the basic economic questions? (a) What to produce? (b) How
to produce? (c) Which needs to satisfy? (d) Which wants to satisfy?
16. Personal economic freedom is most limited in a (a) command economy (b) market economy 16. A
(c) mixed economy (d) traditional economy.
17. Which of the following is NOT characteristic of capitalism? (a) freedom of choice 17. B
(b) government ownership of resources (c) the profit motive (d) competition among
businesses
18. Which of the following is a consumer? (a) a business (b) an individual (c) the government 18. D
(d) all of the above are consumers
Chapter and Unit Tests, Instructor’s Edition 1
®
© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, 19. The quantity of a good or service that consumers are willing and able to buy is called 19. C
(a) supply (b) an economic want (c) demand (d) an economic amount.
20. In which of the following situations is demand MOST likely to be reduced? (a) customers 20. A
see a number of products they believe will satisfy a need (b) customers cannot find a good
substitute for a product they want (c) prices for a popular product are reduced (d) all of the
above tend to reduce demand
Part 3 Matching (2 points each)
Directions In the Answers column match the following terms with their definition.
A. needs F. goods
B. services G. trade-off
C. scarcity H. producers
D. natural resources I. wants
E. consumers J. human resources
Answers
21. Things that add comfort and pleasure to your life. 21. I
22. People producing goods and services. 22. J
23. Things that are required in order to live. 23. A
24. Things that you can see and touch. 24. F
25. When you give up something to have something else. 25. G
26. Those who determine which products and services will be available for sale. 26. H
27. Raw materials supplied by nature. 27. D
28. Not having enough resources to satisfy every need. 28. C
29. Things that are intangible and have no physical characteristics. 29. B
30. Those who buy and use goods and services. 30. E
Part 4 Fill in the Blank (4 points each)
Directions Fill in the word or phrase that best completes each statement.
31. Economic resources are sometimes referred to as factors of production.
32. The process of choosing which wants, among several options, will be satisfied is called economic
decision making.
33. In a(n) traditional economy, goods and services are produced the way they have always been produced.
34. The rivalry among businesses to sell their goods and services is called competition.
35. The point at which supply and demand are equal is called the market price.
2 Chapter and Unit Tests, Instructor’s Edition
®
© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
