G7 Common Assessment
1. Joe is starting a cleaning service. He
has purchased land for his office
space, cleaning materials and money
to pay his initial costs. Which factor
of production is missing?
2. Which factor of production includes
money and all material needed to
produce an item?
3. Why does the number of workers
needed in the production of goods
continue to decrease over time?
A. Failed entrepreneurships
B. Increase in capital goods
C. Increase in labor
D. Supply of natural resources
4. Which factor of production would
include management skills?
5. What is the basic economic concept
that indicates there is ALWAYS going
to be wants not fulfilled?
6. Harley Davidson makes only 500
anniversary editions of their
motorcycles. Since there are so few
motorcycles to sell, what affect will
this have on price?
A. Price stays constant
B. Price remains high
C. Price is fairly low
D. Price goes up and down
7. “Scarcity is an economic problem. To
whom would this statement apply”?
A. For all families in the U.S., even the
B. For poor families only
C. For families but not for the government
D. For no families in the U.S.
8. What is a trade-off?
A. The process of giving up one desire in
order to satisfy another.
B. The value of whatever we give up in
order to do or get something else.
C. The wealth we are given by nature
D. The wealth we acquire through
9. Janna tells Eric she will not go to the
Valentine’s Day dance with him. Janna is
not just saying “yes” to Eric, but she is
also saying “no” to anyone else, because
of her choice to go with Eric. What
economic concept best describes this
A. Opportunity Cost
10. What is the best way to describe
people working on a car assembly
line, doing only one or two specific
A. Labor intensive
B. Division of Labor
11. What is the goal of Jerry’s Pizzeria in
assigning teams of workers to
perform several specific tasks?
A. To increase productivity through
B. To make higher salaries for workers
C. To make profits increase by at least 20%
D. To improve working conditions
12. Which of the items below is human
A. Purchasing more property to expand a
B. Productivity through increased training or
education for workers
C. Raising the salaries of supervisors &
D. Purchasing stock in several corporations
13. Which economic system includes
14. Which economic system discourages
15. What is one concern that Socialists have
A. It is much slower to take advantage of new
B. It concentrates benefits on the most needy in
C. It creates economic inequality within a society
D. It deprives people of the freedom to decide for
themselves how to use their income
16. What is it called when private
individuals and companies decide
what products to manufacture and
what prices to charge for goods and
A. Market Economy
B. Socialist Economy
C. Welfare State
D. Command Economy
17. What did Karl Marx envision
communism in its purest form?
A. A triumph for the free enterprise system
B. Becoming a religion for the bourgeoisie
C. Establishing a dictatorship for the
D. Becoming a free & classless society
18. Which of these occurs in a mixed
A. Private enterprise competes with the
government for economic dominance
B. The government and private enterprise coexist
as major participants
C. All business enterprises are publicly owned,
but privately managed
D. The government directs all economic activity.
19. What is an advantage of Socialism?
A. It rewards the efforts of enterprising
B. It decreases social and economic
inequalities among people
C. It is able to utilize new technologies
quickly and effectively
D. It frees businesses and industry to act in
their own best interests
20. What was the main reason why Karl Marx
wrote “The Communist Manifesto”?
A. To direct an attack against democracy
B. To call for an improvement to market
economies and greater profit for businesses
C. To lead an anti-tax revolt against the Russian
D. To call on all oppressed workers to free
themselves from “capitalistic enslavement”