Chapter 6 Test

Make sure you mark all your answers on the scantron sheet. Please do not write in these test booklets! Good luck

True/False for the following questions, A = True, B = False

1) When something is publically owned this means that it is owned and controlled by the individuals, not the government. 2) In a planned economy, resources are privately owned. 3) In a mixed economy, resources are privately and publicly owned. 4) Businesses succeed if they produce what consumers want; otherwise, the business fails. 5) Where a country sits on the economic continuum can change depending on which political party is in power 6) The public good is about what is best for society as a whole. 7) You will only find crown corporations in a market economy. 8) There is no such thing as a pure market economy or a pure planned economy 9) Apple versus Microsoft is an example of competition 10) Publicly funded health care which was introduced into Canada in the 1960s is an example of a shift left. 11) Air Canada and Petro-Canada are examples of Crown Corporations which have existed in Canadas past. 12) Cuba is an example of a market economy 13) Sweden is an example of a mixed economy
14) Life, liberty and the pursuit of happiness is the founding principle of Canada

15) Capital is the money used to purchase equipment and tools such as factories, cranes and
ladders.

Multiple Choice
16) Canada Post and the Bank of Canada are examples of A) Competition B) Unions C) Rivals D) Crown Corporations 17) Supply is driven by the __________ and demand is driven by __________. A) Consumers, producers B) Government, individuals C) Producers, consumers D) Individual, government 18) Which of the following is NOT something that affects competition? A) The values of the consumer B) The amount of government involvement C) The amount of money that consumer has D) The advertising strategy used by producers 19) Moving from a market economy towards a mixed economy is a A) Shift left B) Shift right C) Shift down D) Shift up 20) What is happening to supply in the following scenario? There has been a major drought and there are not enough cocoa beans to make chocolate bars. It is close to Halloween and therefore the demand is high. Stores are raising the prices in order to make some sort of profit. A) B) C) D) Supply is high Supply is low Supply is not being affected Supply is in a state of equilibrium

21) The factor of production that refers to the "physical and mental effort" to produce a good or service is A) Labour B) Capital C) Land D) Resource

22) When money to pay for projects like new roads is provided both by the private and public sectors, this best describes a A) Market economy B) Mixed economy C) Planned economy D) Laissez-faire economy 23) Better working conditions, higher wages, and increased worker benefits would be the goals of a A) Consumer B) Factory owner C) Government D) Union leader 24) Competition occurs in A) Mixed economy B) Market economy C) Planned economy D) Both a mixed and market economy 25) A labour union is A) An agreement made by workers and employers B) A factor of production C) An organization that works to protect the rights and interests of workers D) A government chosen leader 26) If the government of a country were to own all railways and utility companies, while construction businesses and agriculture were privately owned, this country would most likely have a A) Market economy B) Planned economy C) Mixed economy D) Free enterprise economy 27) Supporters of a market economy will most likely defend their right to A) Own a private business B) Be part of a Crown Corporation C) Have laws allowing labour union D) Waste goods and services 28) Which of the following countries would be most associated with a mixed economy? A) China B) USSR C) Canada D) North Korea

USE THIS CHART TO ANSWER QUESTIONS 29 & 30 Economic System System A System B System C System D Resources Publicly owned (owned by the government) Privately owned (owned by individuals) Privately owned (owned by individuals) Publically and privately owned (owned by both government and individuals) Economic Decisions Made by the government. Made by individual consumers. Made by the government. Made by individual consumers and the government

29) The economic system labeled 'System D' can best be described as a: A) Mixed economy, as practiced in Canada B) Planned economy, as practiced in Canada C) Market economy, as practiced in the US D) Mixed economy, as practiced in the US 30) Which of the following economic systems shown in the table above best describes a market economy such as is used in the United States? A) System A B) System B C) System C D) System D 31) Scarcity is based on the idea of: A) Having lots of a certain product B) Unlimited resources C) Limited resources D) Government intervention 32) Economics is defined as A) The relationship between competition and monopolies B) The study of the production, distribution and consumption of goods and services C) The money that makes the world work D) The system that a country has 33) The Canadian Wheat Board is an example of A) Competition B) Monopoly C) Private business D) Union

34) Which is NOT one of the factors of productions?

A) B) C) D)

Land Labour Capital Government

35) Which of the following best describes the view that is held by Canada and the United States about how to achieve the public good and the type of economic system they have? A) Country Fundamental value Economic System Canada Cooperation Mixed Economy U.S.A. Individualism Market Economy B) Country Canada U.S.A. C) Country Canada U.S.A. D) Country Canada U.S.A.

Fundamental value Individualism Individualism

Economic System Mixed Economy Mixed Economy

Fundamental value Cooperation Individualism

Economic System Market Economy Market Economy

Fundamental value Cooperation Cooperation

Economic System Mixed Economy Market Economy

36) A planned economy is the opposite of a market economy. Industries in a planned economy are owned and controlled by A) The government B) Entrepreneurs C) Labour unions D) The workers 37) The objective of the Competition Act was A) To create a monopoly B) To encourage consumers to spend money C) To encourage competition so that consumers have competitive prices and product choices D) To create a more fair and equal society

38) There are 3 basic questions that economies try to question. Which is NOT one of them? A) How will it get produced? B) Who will get it? C) What creates scarcity? D) What is needed or wanted? 39) When fresh berries are not available at the store because of a poor growth season. This is an example of A) Scarcity B) Land C) Public Good D) Competition 40) Which type of event would a government get involved in? A) Environmental disasters B) Health and safety concerns C) Homelessness D) All of the above 41) Which is NOT one of the reasons that governments create Crown Corporations? A) To support Canadian culture and identity B) To provide essential services C) To promote economic development D) To increase the presence of Canadian companies in the market 42) What will happen to supply and demand, if the price of a product goes up and fewer customers are able to buy the product? A) Demand goes up, Supply goes up B) Demand goes down, Supply goes down C) Demand goes down, Supply goes up D) Nothing happens to supply of demand 43) A shift left means that a country takes more of a _____________ position A) Conservative B) Relaxed C) Liberal D) Controlling 44) A shift right means that a country takes more of a _____________ position A) Conservative B) Relaxed C) Liberal D) Controlling 45) When I can go to a store and buy what I want for a particular price. This represents the state of ____________.

A) B) C) D)

Equality Equity Equilibrium Fairness

Chapter 6 Test
Make sure you mark all your answers on the scantron sheet. Please do not write in these test booklets! Good luck

True/False for the following questions, A = True, B = False

1) When something is publically owned this means that it is owned and controlled by the individuals, not the government. 2) In a planned economy, resources are privately owned. 3) In a mixed economy, resources are privately and publicly owned. 4) Businesses succeed if they produce what consumers want; otherwise, the business fails. 5) Where a country sits on the economic continuum can change depending on which political party is in power. 6) The public good is about what is best for society as a whole. 7) You will only find crown corporations in a market economy. 8) There is no such thing as a pure market economy or a pure planned economy. 9) Apple versus Microsoft is an example of competition. 10) Publicly funded health care which was introduced into Canada in the 1960s is an example of a shift left. 11) Air Canada and Petro-Canada are examples of Crown Corporations which have existed in Canadas past. 12) Cuba is an example of a market economy. 13) Sweden is an example of a mixed economy.
14) Life, liberty and the pursuit of happiness is the founding principle of Canada.

15) Capital is the money used to purchase equipment and tools such as factories, cranes and
ladders.

Multiple Choice
16) Canada Post and the Bank of Canada are examples of E) Competition F) Unions G) Crown Corporations 17) Supply is driven by the __________ and demand is driven by __________. E) Consumers, producers F) Government, individuals G) Producers, consumers 18) Moving from a market economy towards a mixed economy is a E) Shift left F) Shift right 19) What is happening to supply in the following scenario? There has been a major drought and there are not enough cocoa beans to make chocolate bars. It is close to Halloween and therefore the demand is high. Stores are raising the prices in order to make some sort of profit. E) Supply is high F) Supply is low 20) The factor of production that refers to the "physical and mental effort" to produce a good or service is E) Labour F) Capital G) Land 21) When money to pay for projects like new roads is provided both by the private and public sectors, this best describes a E) Market economy F) Mixed economy G) Planned economy

22) Better working conditions, higher wages, and increased worker benefits would be the goals of a E) Consumer F) Factory owner G) Union leader

23) A labour union is E) An agreement made by workers and employers F) An organization that works to protect the rights and interests of workers G) A government chosen leader 24) If the government of a country were to own all railways and utility companies, while construction businesses and agriculture were privately owned, this country would most likely have a E) Market economy F) Planned economy G) Mixed economy 25) Which of the following countries would have a mixed economy? E) China F) Canada G) North Korea 26) Scarcity is based on the idea of: E) Having lots of one product F) Limited resources G) Competition between companies 27) When I can go to a store and buy what I want for a particular price. This represents the state of ____________. E) Equality F) Equity G) Equilibrium 28) The Canadian Wheat Board is an example of E) Competition F) Monopoly 29) Economics is defined as E) The relationship between competition and monopolies F) The study of the production, distribution and consumption of goods and services G) The money that makes the world work H) The system that a country has 30) A planned economy is the opposite of a market economy. Industries in a planned economy are owned and controlled by: E) The government F) Entrepreneurs G) Labour unions H) The workers

USE THIS CHART TO ANSWER QUESTIONS 31 & 32 Economic System System A System B System C System D Resources Publicly owned (owned by the government) Privately owned (owned by individuals) Privately owned (owned by individuals) Publically and privately owned (owned by both government and individuals) Economic Decisions Made by the government. Made by individual consumers. Made by the government. Made by individual consumers and the government

31) The economic system labeled 'System D' can best be described as a: E) Mixed economy, as practiced in Canada F) Market economy, as practiced in the US G) Mixed economy, as practiced in the US 32) Which of the following economic systems shown in the table above best describes a market economy such as is used in the United States? E) System A F) System B G) System C 33) The objective of the Competition Act was E) To create a monopoly F) To encourage consumers to spend money G) To encourage competition so that consumers have competitive prices and product choices 34) Which is NOT one of the factors of productions? E) Labour F) Capital G) Government 35) Canadas view on public good is ___________. The United States view on public good is __________. A) Individualism, Cooperation B) Cooperation, Individualism

36) There are 3 basic questions that economies try to question. Which is not one of them? E) Who will get it? F) What creates scarcity? G) What is needed or wanted? 37) When fresh berries are not available at the store because of a poor growth season. This is an example of E) Scarcity F) Land G) Public Good 38) Which type of event would a government get involved in? E) Environmental disasters F) Health and safety concerns G) All of the above 39) What will happen to supply and demand, if the price of a product goes up and fewer customers are able to buy the product? E) Demand goes up, Supply goes up F) Demand goes down, Supply goes down G) Demand goes down, Supply goes up 40) A shift right means that a country takes more of a _____________ position E) Conservative F) Liberal