Economics Unit 1 Exam

Which characteristic of the U.S. free enterprise system creates the incentive to work, save, and invest?

Use the graphic organizer and your knowledge of social studies to answer the following question.
Which of the following best completes the graphic organizer?

How does competition influence markets in the free enterprise system?

Mary does not like to make choices. She likes to be told what is expected of her. She really does not like it when others have more than she has. She thinks everyone should be rewarded equally. People with values like Mary's are happiest living in and maintaining which type of economic system?

Lauren graduates from college with a teaching degree and is hired by her local district. Interpret Lauren's situation through the use of the circular flow model.

Describe a real world example of the circular flow model involving a dairy farmer.

*Identify a situation
*Predict consequences
*Identify options
*Gather information
*Take action to implement a decision
When you use a decision making process to solve an economic problem, you first list the steps of the process to make sure
one is not left out. However, you have two of the steps out of order. Which two steps need to be rearranged?

On July 1, 2009, the U.S. Census Bureau estimated the population of Texas at 24,782,302, Vermont at 621,760, New York at 19,541,453, Nebraska at 1,796,619, and California at 36,961,644.
On July 1, 2000, the Bureau's estimates had California at 33,994,451; Nebraska at 1,711,345; New York at 18,998,144; Vermont at 609,903; and Texas at 20,945,963.
Transfer the data from written information into a table.

When an economist uses the term opportunity cost, it refers to all of the following situations EXCEPT—

Payroll taxes: ____________ :: compliance with laws: ___________.

Do higher salaries promote success for a team? Evaluate the data to determine the relationship between the average salaries and the performance of teams in the National Football League. Defend your position in a well written paragraph.

Using the characteristics of economic systems listed above, create a table comparing and contrasting the free enterprise and communist systems. Then, elaborate on their differences using examples in a paragraph. Be sure to use proper grammar, spelling, and punctuation.

Draw a T-chart on your paper. Label the left side Advantages of Corporations. Label the right side Disadvantages of Corporations. Complete the T-chart.

Which of the following is the BEST title for the graphic organizer above?

Which method does a corporation primarily use to raise capital?

____________ : U.S. Economy :: ____________ : Cuban Economy.

The Nifty Toy Company has decided to incorporate and sell stock in its corporation. Which of the following will this action accomplish?

U. S. Economic Policies' Costs and
Benefits
Economic Growth
↓
Lower Interest Rates
↓
____________
Which of the following BEST completes the flow chart?

Which of the following will affect them in planning their trip?

Alyssa is beginning her own small tailoring business. She begins by making a list of all the capital goods she will need. Which of the following does NOT belong on her list?

In a well written paragraph, examine the differences and similarities between a socialist economy and a communist economy, using specific and current examples. Be sure to use correct spelling, punctuation, and sentence structure.

Government can affect the circular flow model in all of the following ways EXCEPT—

In which type of economy does Andrew live?

Mary applies for an after school job at a department store which is the supplier of labor in the _______ market. Her salary will be a ________ to the business and a(n) ________ to her household. Mary decides to spend some of her salary on clothing at the mall. Her purchase of goods in the ________ market is a
revenue to a business and ________ spending for a household.

All of the following are benefits of the U.S. free enterprise system EXCEPT—

All of the following are characteristics of the U.S. free enterprise system EXCEPT—

Place the letters of the following characteristics in the Venn diagram above.

The basic idea of choice presents which of the problems in economics?

Our _______ are limited, yet our wants and needs are ________. We have to weigh all ________.

In the scenario above, the values of the people of Econa will affect economic decisions about goods and services in all of the following EXCEPT—

Which type of economy does Xanadu have?

Which type of economic system was created under Mao Zedong?

In the scenario above, China increased its economic development and moved closer to which of the following?

Which of the following economic philosophers is being referred to above?

Which of the following is the opportunity cost of purchasing the stereo?

When David gets a job at the car wash, what is he doing?

The grocery store is which sector of the circular flow model?

With regard to food and clothing in the production possibilities curve above, what does Point B represent?

When can Point F on the model above be attained?

What is required for an economy producing on the curve at Point B to produce more clothing?

Based on the graph and your knowledge of economics, explain whether you believe the United States economy will be doing better or worse in the next few years. In a well worded paragraph, explain your answer using information from the graph.