SOL Review Questions

1. SOL Review Questions Civics & Economics #177 - 249

2. CE.9a – Economic Terms 177. The inability to satisfy all wants because resources are limited – Answer – Scarcity

3. CE.9a – Economic Terms 178. Natural, human, capital, and entrepreneurship are examples of _____________ used during production. Answer – Resources

4. CE.9a – Economic Terms 179. The cost of what is given up when a choice is made – Answer – Opportunity Cost

5. CE.9a – Economic Terms 180. Things that incite or motivate us to buy things (Buy one, get one free) – Answer – Incentives

6. CE.9a – Economic Terms 181. The amount of goods or services consumers want to buy – Answer – Demand

7. CE.9a – Economic Terms 182. The amount of goods or services producers have to sell – Answer – Supply

8. CE.9a – Economic Terms 183. The interaction between supply and demand determines – Answer – Price

9. CE.9a – Economic Terms 184. Selecting an item from a set of possible alternatives – Answer – Choice

10. CE.9a – Economic Terms 185. Making goods or services – Answer – Production

11. CE.9a – Economic Terms 186. Using goods or services - Answer – Consumption

12. CE.9a – Economic Terms 187. Consumer preferences, price, and available resources determine what is – Answer – produced and consumed

13. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 188. Private ownership of all property/resources – Answer – Free Market Economy

14. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 189. Central ownership of property/resources (Communism) – Answer – Command Economy

15. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 190. Government, businesses, and individuals share decision-making - Answer – Mixed Economy

16. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 191. Centrally-planned economy – Answer – Command Economy

17. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 192. Profit, competition, consumer sovereignty, and individual choice – Answer – Both Free Market Economy and Mixed Economy

18. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 193. Government plays virtually no role in the economy – Answer – Free Market Economy

19. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 194. Most common economic system in the world today – Answer – Mixed Economy

20. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 195. Lack of consumer choice – Answer – Command Economy

21. CE.9b – Characteristics of Economic Systems (Free Market, Command, and Mixed) 196. What is the big difference between the different types of economy? Answer – Amount of Government Involvement

22. CE.9c – The United States Economy 197. Businesses are allowed to operate without undue influence from the government – Answer – Free Markets (Enterprise)

23. CE.9c – The United States Economy 198. Earnings minus expenses – Answer – Profit

24. CE.9c – The United States Economy 199. Rivalry between producers/sellers – Answer – Competition

25. CE.9c – The United States Economy 200. Competition results in _______ prices and _______ quality. Answer #1 – lower Answer #2 – better

26. CE.9c – The United States Economy 201. Businesses and individuals have the right to own _____________________. Answer – private property

27. CE.9c – The United States Economy 202. Consumer sovereignty means buyers determine what is produced through their own ___________________________. Answer – purchases

28. CE.10b – Economic Flow 203. Economic flow involves money continuously moving between businesses, individuals, and the _____________. Answer – government

29. CE.10b – Economic Flow 204. Saving and investment provides capital ($$$) that can be borrowed for ______________ and _____________. Answer #1 – expansion Answer #2 – consumption

30. CE.10b – Economic Flow 205. Who owns resources, sell resources, and use income to purchase products? Answer – Individuals

31. CE.10b – Economic Flow 206. Who buys resources, makes products to sell, and uses the profits to purchase more products? Answer – Business

32. CE.10b – Economic Flow 207. Who uses tax revenue to provide public goods and services? Answer – Government

33. CE.10c – Private Financial Institutions 208. Banks, savings and loans, credit unions and securities brokerages are examples of _____________________________. Answer – Private Financial Institutions

34. CE.10c – Private Financial Institutions 209. Private financial institutions bring together ________________________. Answer – savers and borrowers

35. CE.10c – Private Financial Institutions 210. Private financial institutions receive __________ and make _____________. Answer #1 – deposits Answer #2 – loans

36. CE.10c – Private Financial Institutions 211. Private financial institutions encourage saving by paying ________ on deposits. Answer – interest

37. CE.10d – Global Economy 212. Virginia and the United States pursue international trade in order to increase _______________. Answer – wealth

38. CE.10d – Global Economy 213. What is the worldwide selling of goods and services? Answer – Global Economy

39. CE.10d – Global Economy 214. Nations trade in order to obtain goods at a _________________ or goods they cannot ________________ themselves. Answer #1 – lower cost Answer #2 – produce

40. CE.10d – Global Economy 215. Selling goods to other nations helps create _____________. Answer – new jobs

41. CE.10d – Global Economy 216. When companies in the United States specialize in producing certain goods and services it promotes _______________________________. Answer – efficiency and growth

42. CE.10d – Global Economy 217. Technology ___________ the cost of production. Answer – lowers

43. CE.10d – Global Economy 218. Innovations in ___________ contribute to the global flow of capital, goods, services, and ___________________. An example is the _______________. Answer #1 – technology Answer #2 – information Answer #3 – internet

44. CE.11a – Government Promotion of Competition 219. The government promotes competition by enforcing _____________ legislation to discourage the development of ______________. Answer #1 – anti-trust Answer #2 – monopolies

45. CE.11a – Government Promotion of Competition 220. The government promotes competition by engaging in _______________ and supporting ______________ start-ups. Answer #1 – global trade Answer #2 – business

46. CE.11a – Government Promotion of Competition 221. What government agency regulates radio and TV? Answer – The FCC (Federal Communications Commission)

47. CE.11a – Government Promotion of Competition 222. What government agency regulates trade? Answer – The FTC (Federal Trade Commission)

48. CE.11a – Government Promotion of Competition 223. What government agency regulates the environment? Answer – The EPA (Environmental Protection Agency)

49. CE.11b – Public Goods 224. Highways, postal service, and national defense are examples of ___________. Answer – public goods and services

50. CE.11b – Public Goods 225. Public goods benefit ________ people and would _________ be available if individuals had to provide them. Answer #1 – many Answer #2 – NOT