Answers26-27 Ignite Economics-KY-EconomicsWriting Workshop: The Importance of Free Enterprise

Unit 1 Test Answers

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What role do government agencies play in a mixed market economy?

T
They run shipping companies and other sources of distribution.
T
They own farms, factories, and other sources of production.
T
They regulate some aspects of production and distribution.
T
They employ most of the workers in the economic system.
5

Land is considered a resource because it

A
is always available to use.
B
is used to produce things.
C
costs little or nothing to use.
D
requires labor to be useful.
6

Opportunity cost means that something needs to be

r
replenished.
g
given up.
i
ignored.
p
paid for.
7

Which situation best reflects the concept of free enterprise?

A
Consumers have a choice between two bakeries in a single city block.
B
An agency determines which supplements are safe for people to buy.
C
Local officials set the prices for all the gas stations in a community.
D
The government decides the minimum wage for all airline workers.
8

What might happen if an economy is unable to produce wanted goods and services?

P
People will go without them.
P
People will look elsewhere for them.
P
People will stop wanting them.
P
People will focus on needs instead.
9

A pure market economy is sometimes called pure

a
a. command economy.
s
socialism.
c
communism.
c
capitalism.
10

Which statement best describes the body paragraphs of an argumentative essay?

A
The body paragraphs acquaint readers with the topic and set up the ideas that will be presented.
B
The body paragraphs establish the focus of the essay and tell readers what the writer’s position will be.
C
The body paragraphs tie the essay together and tell readers what they have learned and should take away.
D
The body paragraphs flesh out the argument and include counterclaims and evidence from research.
11

John has a large apple orchard. He has decided to bake pies and sell them at the local farmer’s market. Which best describes John’s use of economics?

A
John is using available and renewable resources.
B
John is relying on inexpensive labor costs to improve profits.
C
John is using resources to produce both goods and services.
D
John is assuming consumers will have limited need for his product.
12

"Everyone’s rights should be protected" is an argument

A
for competition.
B
against competition.
C
for regulation.
D
against regulation.
13

What are the cons of a mixed market economy for most citizens? Select four answers.There may be a sizable gap between rich and poor people.It can be very difficult for citizens to start private businesses.Citizens must pay for most basic necessities by themselves.There is no guarantee of steady employment for many citizens.Citizens may pay higher taxes than in other economic systems.Citizens often purchase their own health care and higher education.

T
There may be a sizable gap between rich and poor people.
I
It can be very difficult for citizens to start private businesses.
C
Citizens must pay for most basic necessities by themselves.
T
There is no guarantee of steady employment for many citizens.
C
Citizens may pay higher taxes than in other economic systems.
C
Citizens often purchase their own health care and higher education.
14

In the free-enterprise system of the United States, the government

m
makes no economic decisions.
m
makes some economic decisions.
m
makes most economic decisions.
m
makes all economic decisions.
15

To create the proper tone for an argumentative essay, a writer should

A
include opinionated words.
B
add complicated language.
C
incorporate unusual stories.
D
use a straightforward approach.

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