Chapter 4 Test A (1 of 5)
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Chapter 4 Test A
(1 of 5)
Name
The Nation’s Economy
Date
MATCHING Vocabulary Match the descriptions with the correct terms. Column I
Column II
1. the separation of a work process into a number of different jobs
A producer
2. a person or company who makes a good or a service to sell to others
C profit
B advertising D division of labor
3. the use of public notices to bring attention to a product or service 4. the difference between a business’s total sales and the business’s total expenses
MULTIPLE CHOICE Key Concepts Choose the letter of the correct answer. 5. Which of the following is an example of a need? A clothing B soccer ball C skateboard D laptop computer 6. Which is the difference between a free market economy and a command economy? F In a free market economy, consumers decide which goods and services will be created. In a command economy, the government decides. G In a free market economy, producers decide which goods and services will be created. In a command economy, the government decides. H In a free market economy, the government decides which goods and services will be created. In a command economy, the consumers decide. I In a free market economy, the government decides which goods and services will be created. In a command economy, the producers decide.
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 1
01/12/11 7:51 PM
Chapter 4 Test A
(2 of 5)
Name
The Nation’s Economy
Date 7. How has technology changed communication, or the sharing of ideas and information? A Innovations such as e-mail have made communication faster and cheaper. B Fewer people need to communicate with each other now than did before. C Communication has become much more expensive than it once was. D People communicate less now than ever before. 8. Which is an example of the government providing a public service? F roads G schools H highways I mail delivery 9. Which is an example of bartering? A paying money for a ticket to an amusement park B refusing to buy a game because the price went up C trading a baseball card to someone for a pack of gum D buying two pairs of shoes and getting one of them for half price 10. Which describes inflation? F when G when H when I when
people trade goods and services instead of paying for them the amount of a resource, such as water, is limited the supply of a product is greater than the demand for the product the usual price of many goods and services rises
11. Why do entrepreneurs take risks to open businesses? A They B They C They D They
believe that their ideas for businesses can make money. believe that they will not lose any money if their businesses fail. know that their ideas are too good to fail. know that banks will always lend them more money if they need it.
12. Which is true of the most successful companies? F They G They H They I They
create a huge supply of products. sell products that are very cheap to produce. create products that have a high demand. make products that will sell for a very high price.
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 2
01/12/11 7:51 PM
Chapter 4 Test A
(3 of 5)
Name
The Nation’s Economy
Date 13. What term means that the amount of a resource is limited? A incentive B scarcity C interest D barter 14. Which is an example of an opportunity cost? F realizing that you need five pounds of apples when the store only has three pounds G having to choose between two items because you can’t afford both H buying yourself a T-shirt and a pair of jeans I trading a pair of boots for a baseball glove
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 3
01/12/11 7:51 PM
Chapter 4 Test A
(4 of 5)
The Nation’s Economy
Name
Date
Use the graph to answer questions 15 and 16.
Jobs in the United States .7 million 2 million
7 million 13 million
116 million
Mining
Services
Construction
Agriculture
Manufacturing 15. Which sector provides the most full-time jobs in the United States? A Construction B Manufacturing C Agriculture D Service 16. Which sector provides about 7 million full-time jobs in the United States? F Agriculture G Mining H Construction I Manufacturing
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 4
01/12/11 7:51 PM
Chapter 4 Test A
(5 of 5)
Name
The Nation’s Economy
Date
SHORT ANSWER Critical Thinking Write your answers in the space provided. 17. What are the three basic questions that all economies must answer?
18. What are two examples of personal economic choices that people make every day?
19. Summarize the way in which a free enterprise system, or market economy, produces goods and services.
20. How do banks encourage people to save money? What do banks do with the money people have saved?
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 5
01/12/11 7:51 PM
Chapter 4 Test A
(1 of 5)
Name
The Nation’s Economy
Date
MATCHING Vocabulary Match the descriptions with the correct terms. Column I
Column II
1. the separation of a work process into a number of different jobs
A producer
2. a person or company who makes a good or a service to sell to others
C profit
B advertising D division of labor
3. the use of public notices to bring attention to a product or service 4. the difference between a business’s total sales and the business’s total expenses
MULTIPLE CHOICE Key Concepts Choose the letter of the correct answer. 5. Which of the following is an example of a need? A clothing B soccer ball C skateboard D laptop computer 6. Which is the difference between a free market economy and a command economy? F In a free market economy, consumers decide which goods and services will be created. In a command economy, the government decides. G In a free market economy, producers decide which goods and services will be created. In a command economy, the government decides. H In a free market economy, the government decides which goods and services will be created. In a command economy, the consumers decide. I In a free market economy, the government decides which goods and services will be created. In a command economy, the producers decide.
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 1
01/12/11 7:51 PM
Chapter 4 Test A
(2 of 5)
Name
The Nation’s Economy
Date 7. How has technology changed communication, or the sharing of ideas and information? A Innovations such as e-mail have made communication faster and cheaper. B Fewer people need to communicate with each other now than did before. C Communication has become much more expensive than it once was. D People communicate less now than ever before. 8. Which is an example of the government providing a public service? F roads G schools H highways I mail delivery 9. Which is an example of bartering? A paying money for a ticket to an amusement park B refusing to buy a game because the price went up C trading a baseball card to someone for a pack of gum D buying two pairs of shoes and getting one of them for half price 10. Which describes inflation? F when G when H when I when
people trade goods and services instead of paying for them the amount of a resource, such as water, is limited the supply of a product is greater than the demand for the product the usual price of many goods and services rises
11. Why do entrepreneurs take risks to open businesses? A They B They C They D They
believe that their ideas for businesses can make money. believe that they will not lose any money if their businesses fail. know that their ideas are too good to fail. know that banks will always lend them more money if they need it.
12. Which is true of the most successful companies? F They G They H They I They
create a huge supply of products. sell products that are very cheap to produce. create products that have a high demand. make products that will sell for a very high price.
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 2
01/12/11 7:51 PM
Chapter 4 Test A
(3 of 5)
Name
The Nation’s Economy
Date 13. What term means that the amount of a resource is limited? A incentive B scarcity C interest D barter 14. Which is an example of an opportunity cost? F realizing that you need five pounds of apples when the store only has three pounds G having to choose between two items because you can’t afford both H buying yourself a T-shirt and a pair of jeans I trading a pair of boots for a baseball glove
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 3
01/12/11 7:51 PM
Chapter 4 Test A
(4 of 5)
The Nation’s Economy
Name
Date
Use the graph to answer questions 15 and 16.
Jobs in the United States .7 million 2 million
7 million 13 million
116 million
Mining
Services
Construction
Agriculture
Manufacturing 15. Which sector provides the most full-time jobs in the United States? A Construction B Manufacturing C Agriculture D Service 16. Which sector provides about 7 million full-time jobs in the United States? F Agriculture G Mining H Construction I Manufacturing
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 4
01/12/11 7:51 PM
Chapter 4 Test A
(5 of 5)
Name
The Nation’s Economy
Date
SHORT ANSWER Critical Thinking Write your answers in the space provided. 17. What are the three basic questions that all economies must answer?
18. What are two examples of personal economic choices that people make every day?
19. Summarize the way in which a free enterprise system, or market economy, produces goods and services.
20. How do banks encourage people to save money? What do banks do with the money people have saved?
Regions of Our Country
Copyright © Pearson Education, Inc., or its affiliates. All Rights Reserved.
ESS13_ANC04_NA_AS_C04_Test_A.indd 5
01/12/11 7:51 PM
