ECONOMIC DEVELOPMENT 7.

In a command economy, how are significant

economic choice made?
REVIEWER
a. All facts of economic activity are
under the jurisdiction of government
officials
I. MULTIPLE CHOICE b. Most decisions are made by agricultural
commodities wholesalers
c. Manufacturers of industrial goods
1. Which of the following is a forest’s economic control the resources
value? d. Supply and demand are determined by
a. Provide wood consumers of foodstuffs
b. Decreasing flooding 8. How do command economies and free
c. Regulate the water cycle market economies vary from one another?
d. Prevent soil corrosion a. Prices set by consumers
2. Deforestation happens in developing b. A variety of economic incentives
countries because encourage business growth
a. They don’t need a lot of oxygen due to c. Resources are allocated by
low population government decisions
b. They build a lot of houses d. There is a high rate of unemployment
c. They have endless trees to give 9. What are the limitations of mixed economy?
d. They use the trees as a source of a. High taxation and less incentive to work
income hard
3. Which of the following contributes the most b. All profit goes to the government
to forest pollution? c. Restrictions on personal freedoms
a. Littering d. Uneven distribution of resources
b. Animal waste 10. What is the common economic issue facing
c. Leaf removing all countries?
d. Acid rain a. The problem of meeting everyone’s
4. What constitutes the core of any society’s needs
economy? b. Not enough population
a. Gardening, raising livestock, and c. Too much population
hunting d. Not enough resources
b. Production, exchange and money 11. When deciding “what to produce”, what is
c. Production, distribution and said to be limited?
exchange a. Population
d. None of the above is CORRECT b. Power
5. All of the following are examples of c. Resources
traditional economies, with the exception of: d. Water
a. Large scale business of 12. Which of the following situations doesn’t
manufacturing promote profit in a free enterprise system?
b. The barter system a. A business enterprise begins to lower its
c. Subsistence agriculture costs.
d. Hunting and gathering b. A producer uses the firm’s resources
6. What would people in a traditional society more efficiently
be most likely to do? c. The cost of raw materials has
a. Establishing a mercantile system of increased
trade d. Ambitious salespeople have increased
b. Working in an industrialized city the sales volume without reducing
c. Serving in government assemblies prices.
d. Having the same occupation as their 13. A centrally planned economy promotes
parents _____.
a. Private property, profit, and competition
 b. Government ownership, no competition, 21. Approaches to development that emphasize
and no profit the environment often want to focus
c. Government ownership, competition, attention on which of the following?
and no profit a. Sustainability
d. Government ownership, profit, and b. Accountability
no competition c. Transparency
14. An economic system that has government d. Autonomy
restrictions on the actions of individuals and 22. Which of the following would typically be
businesses is called considered “human capital”?
a. Traditional economy a. Gender and race
b. Command economy b. Health and education
c. Mixed economy c. Prime ministers and presidents
d. Market economy d. Religious world views and trust
15. The items that consumers buy are called 23. What is the most typically used measure of
____ a country’s level of development?
a. Private property a. Technological innovation
b. Factors of production b. Mobility
c. Manufacturing goods c. Income
d. Consumer goods d. Gender equity
16. Which of the following characteristics are 24. Scarcity of capital, unemployment and
most likely found in developing countries? technological backwardness are generally
a. High population growth rates found in _____ economies.
b. Large number of people living in poverty a. Underdeveloped
c. Very traditional methods of agricultural b. Developed
production c. Partly developed
d. None of the above d. None of the above
17. Which of the following could not be 25. Which of the following is not indicator of an
considered a major economic system? economically developed nation?
a. Capitalism a. High level of literacy
b. Communism b. Low death rate
c. Socialism c. High per capita income
d. Physical quality of index d. A high proportion of labor in the
18. It is an increase in a country’s per capita primary sector
output
a. Entrepreneurship
b. Hospital needs II. TRUE OR FALSE
c. School enrollment
d. Craving for food
19. Which among the following is a guiding 1. Economic growth is necessary and
force for the capitalist economy? sufficient to eradicate most of absolute
a. Social service poverty. (FALSE)
b. Private property 2. The main characteristics of an
c. Competition underdeveloped economy is that it has a
d. Profit motive state of deprivation among large proportions
20. The term economic growth is explained by of the population. (TRUE)
_____ 3. Income is the most typically used measure
a. Structural changes in the economy of a country’s level of development (TRUE)
b. Increase in the per capita production 4. A certain amount of goods and services is
c. Increase in the per capita income necessary for a minimum standard of living.
d. All of the above This is called the concept of development.
(FALSE)
5. Sustainability is principally a national issue according to their level of development?
and is not international or global one. (Income)
(FALSE) 5. The standard of living is just one aspect of
6. For any two countries, the one with the ____ which deals with the quality of life.
bigger per capita GDP will have a more (Economic development)
equitable distribution of income. (FALSE) 6. It is only concerned with the people’s level
7. Most of the underdeveloped economies of life (GDP- Goods and Services).
suffer from high population pressure which (Economic growth)
do not let the rate of growth go up from a 7. Better wages/salaries, perks, and career
lower level. (TRUE) prospects are all a result of this economic
8. The rate of growth of an economy mainly progress. (Job creation)
depends upon the rate of technological 8. Economic diversification is a key component
improvements. (TRUE) of economic development since it lessens a
9. Average income and per capita income both region’s dependence on a single industry.
are the same concepts. (TRUE) (Industry diversification)
10. Life expectancy is age at the time of death. 9. Successful economic development
(FALSE) frequently happens when locally produced
commodities are more widely used in the
local economy. (Recognition of local
III. MODIFIED TRUE OR FALSE products)
10. Economic development penetrates
additional cash that helps fund, maintain,
1. Bartering is the process of exchanging and upgrade local infrastructure including
things without the use of money which is roads, parks, libraries, and emergency
commonly found in a command economy. medical services. (Income Tax Revenue)
(traditional)
2. Command economy is also called as
communism. (TRUE) V. MATCHING TYPE
3. Democracy emphasizes individual rights
under the mixed economy. (market)
4. Hong Kong is considered an example of a 1. The application of better technology means
free market society (TRUE) the same amount of labor will be more
5. In a market economy, decisions about the productive, and economic growth will
economy are made by both the government advance at a lower cost. (Improvement in
and the general public. (mixed) Technology)
2. Without fundamental literacy and numeracy
skills, it is challenging for an economy to
IV. IDENTIFICATION transition from manual labor to new, high-
tech service industries. (Educational
Standards)
1. Increased employment and better 3. A positive feedback cycle of increased
infrastructures boost the local economy and investment, higher growth, and large
elevate the level of living for its citizens. savings is made possible by increasing
(Improved quality of life) savings. (Level of savings/capital)
2. Economic development by maintaining the 4. It was listed as one of the most crucial
natural resources for present and future use elements for entering a business to invest in
is known as ______. (sustainable emerging markets. The risk of making
development) investments in developing nations rises with
3. What is the one factor on which our life the first sign of instability, both personally
depends? (sustainable growth) and economically. (Political Stability)
4. What is regarded as one of the most crucial 5. Low inflation rates and stable currency rates
characteristics when we compare nations are required for this. Economic uncertainty
 and a reduction in growth can result from a
swift devaluation. (Macroeconomic
Stability)
6. The revenues gained from oil have enabled
the Gulf States to develop rapidly gaining
high levels of real GDP. (Natural
resources)
7. Taxes are required by the government to
pay for public infrastructure and services.
(Tax rates)
8. It refers of the creation and use of concepts
and technologies that enhance products
and services or increase the effectiveness
of their production. (Innovation)
9. It is a system that the government uses to
plan and distribute readily available
services, resources, and goods throughout
the nation. (Economic System)
10. They possess the courage to take chances
that society would normally be reluctant to
take. (Entrepreneurs)