Social Studies

Unit 3
1. In which type of economy do individuals have the most freedom? A. mixed B. market C. command D. traditional 4. Why would a company spend money to buy new machines for its factories rather than continue to use older machines that were still working? A. Older machines cannot be run well by younger workers. B. Older machines do not produce as much pollution as newer ones. C. New machines might help the company produce more goods at a lower price. D. New machines would cost the company a lot of money but would provide jobs for workers.

2. Why is it important for a country to invest in human capital? A. It needs money in order to pay workers. B. Workers enjoy getting extra training and job opportunities. C. Businesses cannot do all the training needed by workers to be successful. D. A countrys economy is more successful when workers have good education and good health care.

5. What environmental disaster occurred in 1986 in Chernobyl, Ukraine? A. a nuclear reactor explosion B. acid rain caused by engine exhaust C. the great smoke from coal-burning factories D. the death of forests due to water pollution from mining

3. Which is an example of investing in capital goods by a company A. constructing a new factory B. keeping old delivery trucks C. training workers to do their jobs better D. keeping old computers in order to save money

6. What is the main reason for people to exchange currency? A. to have foreign money B. to use American dollars to trade C. to make more money by trading currency D. to buy and sell goods and services with other countries

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Social Studies
Unit 3
7. Which situation might be a reason country Y would place an embargo on country Z? A. Country Y is trying to provide aid to country Z. B. Country Y is enemies with country Z and wants to cripple their economy. C. Country Y wants to expand trade with country Z. D. Country Y wants to expand trade with country Z. 10. Which is an example of an entrepreneur? A. a manager of a hospital B. a person who runs a government-owned coal mine C. a roofer who works for a business owned by an individual 8. How does having natural resources help the economy of a country? A. The country has enough people to produce all the goods and services that it needs. B. The country saves money because it does not have to import natural resources. C. Companies must import natural resources to create goods to sell. D. Companies spend more money because they must buy the natural resources needed to create more goods. 11. What are the main causes of acid rain? A. farms and forests B. water power and electricity C. coal burning factories and automobile emissions D. solar power and wind turbines blowing the poison gases D. a person who uses her money and time to start a business selling cell phones 9. Which is an example of human capital investment? A. cash B. factories C. education D. highways

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Social Studies
Unit 3
15. The United Kingdom Customs Service has found toxic lead-based paint in toys imported from a Chinese toy-making company. These toys are intended for sale in the United Kingdom. Exposure to the paint over a long period of time could be fatal to children under 6 years old. What type of trade barrier would guarantee that no child in the United Kingdom would be exposed to the deadly lead-based paint? A. embargo 13. Which was an effect of the nuclear disaster at Chernobyl? A. People and animals did not get sick. B. Drinking water was unsafe for months. C. Forests got healthier than they had been. D. All the nuclear power plants in the world were closed. 16. Which economic system is least likely to be found in Europe since the fall of Communism? 14. A country may have a high GDP for all of the following reasons except: A. invests a lot of money in human capital B. has many natural resources C. has many embargoes with other countries D. invests a lot of money in capital goods A. capitalism B. market economy C. command economy D. traditional economy B. quota C. exchange rate D. tariff

12. Which situation is an effect of acid rain? A. cleaner rivers B. diseased forests C. buildings and statues that look new D. increased automobile manufacturing

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Social Studies
Unit 3
17. Use the information below to answer the question: 19. Which of the countries has the least freedom to do business? You are a small business owner and you sell computer gaming consoles. You have chosen to sell this product to teenagers and young adults. You decide to sell consoles because they are easy to build, are popular and make a high profit. You decide on the prices for your consoles based only on the following factors: How many consoles you have in your warehouse, and How many consoles you are selling each week A. Cuba B. Brazil C. Canada D. United Kingdom

Which type of economy do you have? A. traditional B. command C. market D. closed

Command Economy Market Economy

Use the diagram to answer question 20.

18. Because most economies have characteristics of the command and market economy, we say they are A. free. B. mixed. C. capitalist. D. communist.

Cuba

Venezuela

Brazil Canada

20. Which country has the most economic freedom? A. Cuba B. Brazil C. Canada D. Venezuela

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Social Studies
Unit 3
21. In which country would it be most difficult for a person to start a business? A. Cuba B. Germany C. United Kingdom D. Italy A. quota B. tariff C. embargo D. voluntary exchange 22. Which of these issues would make the United Kingdom a more desirable place to start a business than Russia? A. The government in Russian owns most industries. B. Russias court system always protects the rights of property owners. C. It takes less time to start a business in Russia than the United Kingdom. D. Private citizens and corporations in the United Kingdom decide how goods will be produced. 26. Which is an example of a natural resource? A. forests 23. Which type of trade barrier involves a limit on goods brought into a country? A. quota B. tariff C. embargo D. voluntary exchange B. highways C. education D. automobiles 24. In order to help Russian farmers sell more food, some people want to put a tax on the food imported from other countries. This is an example of a(n)

25. What is the currency people use in much of the EU called? A. euro B. ruble C. dollar D. pound

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Social Studies
Unit 3

27. Which trade barrier did members of the European Union decide to eliminate? A. subsidies B. quotas C. embargos D. tariffs

31. Which person brings together all of the productive resources to create a product? A. banker B. consumer C. producer D. entrepreneur

28. Which term refers to the value of all goods and services produced within a country for one year? A. entrepreneur B. capital good C. productive resources D. gross domestic product 29. Coal, diamonds, wood, or water would all be examples of which type of productive resource? A. human resource B. capital resource C. investment capital D. natural resource

32. In this primitive economic system, individuals rely on bartering to obtain the goods they need. A. mixed economy B. traditional economy C. market economy D. command economy

33. Which economic system would be used by most Communist countries? A. mixed economy B. traditional economy

30. Warehouses, factories, trucks, and hammers would all be examples of which type of productive resource? A. human resource B. capital resource C. investment capital D. natural resource

C. market economy D. command economy

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Social Studies
Unit 3
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. B D A C A D B B C D C B B C A C C B A C A D A B A A D D D B D B D

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