World - Industrial Revolution

In the 1700s, the process of enclosure tended to increase

• farming efficiency, by allowing farmers to experiment with new tools and methods on larger farms.

• the amount of common land available for grazing animals.

• the number of small farms surrounding towns and villages.

• farmers' reliance on a single cash crop, grown year-round.

Steam engines were first created in England to

• drive machinery in urban textile mills

• pump water our of coal mines to allow deeper mining

• power locomotives to pull trains

• drive paddle wheels on steamships

An individual who takes a risk to start a business in order to earn a profit is known as an:

• industrialist

• investor

• entrepreneur

• executive

Of the three natural law of economics proposed by Adam Smith, this one makes for better, cheaper products

• Law of self-interest

• Law of supply and demand

• Law of Capitalism

• Law of competition

This type of economy is called a "substance" economy because people only make what they need

• Command Economy

• Mixed Economy

• Traditional Economy

• Market Economy

Which statement correctly describes the role of the government in a country with a mixed economy?

• The government exercises no decision making in economic matters; production and distribution are determined solely by individuals.

• The government makes some production and distribution decisions, but other economic decisions are made by individuals.

• The government allows economic decisions to be made by the society’s traditions and customs.

• The government makes all decisions regarding the production and distribution of goods.

In a certain country, all decisions concerning the production of goods and services are made by the government. However, following a political revolution, a new economic system is set up in which some decisions regarding production of goods and services are made by the government and others are made by individuals and private companies.How has the economy of this country changed?

• From a traditional economy to a command economy

• From a mixed economy to a market economy

• From a command economy to a mixed economy

• From a market economy to a traditional economy

Economic systems answer the question of how goods and services are produced. What is one way a country could change from a command economy to a market economy?

• if agricultural and factory workers are required to join labor unions

• if privately owned banks become subject to stricter regulation

• if industries that had been owned by the government become privately owned.

• if the government takes control of family-owned farms

All of the following are true of capitalism EXCEPT…

• It closes the gap between the rich and poor.

• It allows individuals the freedom to take risks and earn profits.

• It creates winners and losers in the economy.

• The means of production are owned by private individuals.

Which of the following was NOT one of Adam Smith’s key economic ideas?

• Competition leads to lower prices and higher quality products.

• The government should closely regulate business to ensure economic stability.

• People, if allowed, will work for their own self-interest, doing what they do best.

• Supply and demand are what best determine how resources are distributed.