Government and Economics Unit 6 Quiz 1: Economics
Mark the statements that are NOT TRUE about capital.
-Capital is your neighboring country's money.
Mark the statements that are TRUE.
-Your nation's money is considered capital. -Your nation's labor force includes people who want to work but do not have a job at the moment. -It would not make much sense to force an unskilled laborer to work in a surgical position.
Select the three types of economic systems.
-communism -mixed economy -capitalistic
Which of these are "service" jobs?
-stockroom worker -waiter/waitress -nurse -housecleaning -painter -butler -accountant -dentist
Communism gives more individual economic freedom than capitalism.
False
Inflation hurts the debtor, but helps the creditor.
False
Lazer Supermarket increases prices on an item from 75 cents to $1.50...and nobody cares. They'll buy it anyway. This is an example of inflation.
False
The capitalistic system is also called a monopoly system.
False
The fourth point of building an economy is to see what communications are available.
False
Which of these statements is NOT true?
In inflation, the dollar gets stronger.
A farmer's market is an example of capitalism at work.
True
A labor force means all people in your nation who are working or are seeking work.
True
Economics can be defined as being the science of producing, distributing and consuming goods or products.
True
In a mixed economy, the government has more control over such industries as railroads and mines.
True
Inflation is when prices in a national economy increase, or the purchasing power of the dollar weakens on a continual basis.
True
Inflation leads to uncertainty and confusion about prices. It interferes with planning for the future.
True
Some things to consider in making an economy grow are the labor force and the technology available.
True
The second part of creating your nation's economy is that you must build capital.
True
China
a contemporary example of a communistic economic system
An advantage for oneself; a benefit or gain is called a
boon
Proverbs 28
condemns those who cheat to get wealthy
The higher the demand, the_______a price can be put on the item.
higher
Proverbs 31
honors the woman who manages her household well
Inflation is an economic condition in which the_______supply is increasing faster than the supply of goods and services.
money
In making your country's economy grow, first look at your natural
resources
The result of inflation is a_______in the general price level.
rise
Adam Smith
the Scottish economist wrote of the need for basic economic freedoms
Charles Goodyear learned the process of_______rubber (which made the rubber incredibly strong and durable).
vulcanizing
Labor demands a higher wage to compensate for inflation, which leads to higher prices, then even higher wages. This is called a_______
wage-price spiral
Descendants of the expelled Russian Mennonite farmers have continued to grow enormous crops of red _____ in the United States.
wheat
Karl Marx
wrote the " Communist Manifesto "
