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Market Economies + Mastery Test | Questions and answers | Rated A+ | 2024/25
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Market Economies + Mastery Test | Questions and answers | Rated A+ | 2024/25
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Market Economies + Mastery Test |Questions and answers | Rated A+ | 2024/25
Activity
Read these scenarios, and then answer the questions that follow.
Scenario 1 Harry teaches math in a school. He owns a car and a house. He loves to paint
whenever he has time. During the recent presidential election, he voted for the candidate whose
economic policies he strongly believed in, such as providing incentives for people to start their
own businesses. Someday, Harry wants to open his own art gallery.
Scenario 2 Julie works at a government-owned factory. Most people in her town work in the
same factory. Julie is a born artist and aspires to own an art gallery. However, the government
restricts the number of businesses that can be started each year.
Part A
What is different about these two situations? In the first situation, the government gives a lot of
economic freedom to its citizens. In the second situation, the government gives limited economic
freedom to its citizens.
Part B
Which type of situation would you rather be in? Justify your response. One possible answer
is that the first situation is preferable because the level of economic freedom given to citizens
makes it easier for people to start their own businesses if they want to.
Drag each label to the correct location on the table.
Label each economic system based on the characteristics listed in the table. (left to right)
-capitalism
-socialsim
-communism
Activity
In this activity, you will analyze the economic health of four nations with varying degrees of
government control.
Question 1
Go to the United States section of the CIA World Factbook, and read the Economy section. After
you finish reading, answer the following questions about the US economy. You may use
additional online resources of your choosing to aid in answering these questions.
Part A
What is the per capita GDP of the United States? Be sure to indicate the calendar year that this
information represents. Answers may vary depending on when you access the site.
$54,800 (2014)
Part B
What is the unemployment rate in the United States? Be sure to indicate the calendar year that
this information represents. Answers may vary depending on when you access the site.
6.2% (2014)
, Part C
Who makes most of the economic decisions? Private individuals and businesses make
most of the economic decisions.
Part D
Most of the increase in wages has gone to what group of people? Most of the increase in wages
has gone to 20 percent of households.
Part E
What are US firms at the forefront of? US firms are at the forefront of technological
advances.
Question 2
Go to the Cuba section of the CIA World Factbook, and read the Economy section. After you
finish reading, answer the following questions about the Cuban economy. You may use
additional online resources of your choosing to aid in answering these questions.
Part A
What is the per capita GDP of Cuba? Be sure to indicate the calendar year that this information
represents Answers may vary depending on when you access the site.
$10,200 (2010)
Part B
What is the unemployment rate in Cuba? Be sure to indicate the calendar year that this
information represents. Answers may vary depending on when you access the site.
3.6% (2014)
Part C
What type of economic system does Cuba have? Cuba has a socialist economic system.
Part D
What are two ways in which Cuba has recently reformed its economy? Cuba has recently
reformed its economy by taking these steps:
-allowing consumers to buy electronic appliances and cell phones
-allowing consumers to stay in hotels
-allowing buying and selling of used cars
-cutting government jobs
-allowing entrepreneurs
-allowing private ownership
-allowing sales of real estate and new vehicles
-allowing private farmers to sell agricultural goods directly to hotels
Part E
What prompted the government to make these changes? A low standard of living prompted
the government to make these changes.
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