1) Which statement best describes an aspect of a command economy?
(1) Profit motivates individuals to set up private businesses.
(2) Tradition, religion, and customs heavily influence economic decisions.
(3) Supply and demand regulate the economy.
(4) Government directs and controls the means of production.
2) An economist is a social scientist who focuses on the study of the
(1) development of spiritual practices
(2) establishment of legal systems
(3) creation and implementation of social class systems
(4) production and exchange of goods and services
3) Which topic is central to the study of economics?
(1) tracking the development and spread of diseases
(2) understanding the causes of ethnic rivalries
(3) examining the distribution and use of limited resources
(4) studying the growth and role of political parties
4) Which social scientist primarily studies how people change resources into goods and services?
(1) archaeologist
(3) sociologist
(2) economist
(4) psychologist
5) Which feature would most likely be included in an economic system based on traditional agriculture and
self-sufficiency?
(1) Banks
(3) barter
(2) gold standard
(4) tariffs
6) Which activity would be most characteristic of people in a traditional society?
(1) serving in government assemblies
(2) working in an industrialized city
(3) having the same occupation as their parents
(4) establishing a mercantile system of trade
7) In a command economy, economic decisions are mostly influenced by
(1) consumer demands
(3) private investors
(2) government policies
(4) banking practices
8) The term subsistence farming is best defined as
(1) redistributing farmland
(2) producing only enough crops to meet family needs
(3) irrigating farmland
(4) exchanging farm products for money
9) Which Neolithic Revolution development led to the other three?
(1) complex civilizations
(3) division of labor
(2) surplus of food
(4) domestication of plants and animals
10) The primary reason the Bantu-speaking people of West Africa migrated southward and eastward between
500 B.C. and A.D. 1500 was to
(1) flee warfare
(3) establish a colonial empire
(2) seek religious freedom
(4) find land for farming and grazing
11) What does this illustration show about a typical manor?
(1) All residents were treated equally.
(2) Secular values in society were stressed.
(3) There were a large number of factories.
(4) People depended on agricultural production.
12) The terms masters, apprentices, and journeymen are most closely associated with the
(1) encomienda system of Latin America
(2) guild system of Europe in the Middle Ages
(3) civil service system of China during the Tang dynasty
(4) caste system of India
13) During the feudal period in Europe, power and position in society were based on the
(1) amount of money earned
(3) number of slaves owned
(2) level of education achieved
(4) amount of land possessed
14) What was one direct result of the Crusades?
(1) Trade increased between Europe and the Middle East.
(2) Islamic kingdoms expanded into Europe.
(3) Arabs and Christians divided the city of Jerusalem between them.
(4) Alexander the Great became a powerful leader in Eurasia
15) What were two indirect results of the Crusades?
(1) trade and commerce increased and the feudal system was strengthened
(2) trade and commerce declined and the feudal system was strengthened
(3) trade and commerce increased and the feudal system was weakened
(4) trade and commerce declined and the feudal system was weakened
16) Which revolution in Europe is most closely associated with the rise of capitalism, the formation of guilds,
and the growth of banking systems?
(1) Commercial
(2) Agrarian
(3) Scientific
(4) Glorious
17) The Commercial Revolution helped lead to the Industrial Revolution because during the Commercial
Revolution
(1) the barter system was instituted
(2) new forms of business were developed
(3) socialism was introduced to Europe
(4) subsistence agriculture was promoted
18) One way in which the Silk Roads and the West African trade routes are similar is that along both routes
(1) the main items exchanged were ivory and tobacco
(2) concrete was used to improve the surface of the roads
(3) a single currency was used to make transactions easier
(4) ideas were exchanged as merchants interacted with each other
19) Much of the wealth of the West African kingdoms of Ghana and Mali was gained from the
(1) sale of slaves to Europeans
(2) creation of colonies on the Mediterranean coast
(3) taxation on goods brought by Indian merchants
(4) control of the trans-Saharan trade in gold and salt
20) A key objective of a mercantilist policy was to
(1) establish colonies for trade benefits
(2) promote warfare throughout Europe
(3) develop assembly lines in factories
(4) support the spread of communist ideas
21) Between 1300 and 1600, which economic system began to develop as a result of the transformation in
global trade?
(1) socialism
(3) capitalism
(2) communism
(4) manorialism
22) Prices in Spain rose as colonies supplied large amounts of gold and silver. This suggests that Spanish
imports of gold and silver led to
(1) food shortages
(3) unemployment
(2) inflation
(4) self-sufficiency
23) Which statement demonstrates a major characteristic of mercantilism in colonial Latin America?
(1) Colonies developed local industries to compete with Spain.
(2) Spanish colonies traded freely with English colonies.
(3) Spain instituted democratic governments in its colonies.
(4) Colonies were a source of raw materials for Spain.
24) What was a major cause of the French Revolution?
(1) inequalities in the tax structure
(2) economic success of mercantilism
(3) failure of the Congress of Vienna
(4) Continental System in Europe
25) Before a nation can begin to industrialize, that nation must first develop
(1) a democratic government
(3) a strong religious foundation
(2) a rigid class structure
(4) an adequate food supply
26) Which characteristic is associated with an economy based on the principles of laissez-faire?
(1) prices based on supply and demand
(2) production quotas established by the central government
(3) distribution of goods determined by the customs of a traditional society
(4) some goods exchanged for other goods of equal value
27) In The Communist Manifesto, Karl Marx and Friedrich Engels expressed the idea that
(1) religion should be the most important factor in society
(2) power should be determined by a person’s wealth
(3) profits from work should belong to the workers
(4) supply and demand should control prices
28) Adam Smith would most likely agree with which statement?
(1) Revolution is the only solution to economic problems.
(2) Five-year plans are necessary in order to industrialize.
(3) All nations would benefit from an agricultural economy.
(4) Government should follow a laissez-faire policy.
29) Which idea is most closely associated with laissez-faire economics?
(1) communes
(3) subsistence agriculture
(2) trade unionism
(4) free trade
30) Karl Marx predicted that laissez-faire capitalism would result in
(1) a return to manorialism
(2) a revolution led by the proletariat
(3) fewer government regulations
(4) an equal distribution of wealth and income
31) According to the theories of Karl Marx, history can be viewed as a
(1) succession of famines that result in the destruction of civilizations
(2) repeating cycle of imperialism and colonialism
(3) listing of the accomplishments of the ruling classes
(4) continuous struggle between economic classes
32) Some developing countries rely on a single cash crop such as cotton or sugar cane. The origin of this
practice can often be traced to the
(1) introduction of communism
(3) colonization of the region
(2) establishment of democratic
(4) movements to gain independence
governments
33) In the past, European nations have conquered other lands, made them into colonies, and controlled their
economies.
Which term refers to the situation described in this statement?
(1) socialism
(3) imperialism
(2) isolationism
(4) monotheism
34) Throughout the 1800’s, an increased need for both raw materials and new markets for manufactured goods
led various European nations to pursue policies of
(1) imperialism
(3) isolationism
(2) socialism
(4) communism
• “Hungry Workers in Petrograd Demand Food”
• “ ‘Peace, Land, and Bread’ Promised to All”
• “World War I Soldiers Join the People’s Rebellion”
35) Which event is associated with these headlines?
(1) Tiananmen Square protests
(2) Soweto uprisings
(3) Russian Revolution
(4) Cuban Revolution
36) A major goal of Joseph Stalin’s five-year plans was to
(1) encourage communist revolutions in the colonies of the European powers
(2) transform the Soviet Union into an industrial power
(3) expand the Soviet Union’s borders to includewarm-water ports
(4) reduce the amount of foreign aid coming from the Western Hemisphere
37) Which is an accurate statement about the Soviet economy under the leadership of Joseph Stalin?
(1) a large selection of consumer goods became available
(2) the Soviet Union increased its industrial output by developing heavy industry
(3) private farmers were encouraged to sell their surplus produce in an open market
(4) the government reduced its role in planning industrial production
38) The Marshall Plan was designed to stop the spread of communism by providing
(1) government housing to refugees
(2) military assistance to Vietnam
(3) funds for economic recovery in war-torn European nations
(4) nuclear weapons to North Atlantic Treaty Organization (NATO) members
39) The North Atlantic Treaty Organization (NATO) was initially formed to
(1) promote religious freedom
(2) defend Western Europe from Soviet aggression
(3) isolate member nations from the rest of the world
(4) stop the flow of immigration between member nations
40) “A group of planners makes all economic decisions. The group assigns natural, human, and capital resources
to the production of those goods and services it wants. The group decides how to produce them and to
whom to distribute them”
This description best applies to the
(1) manorial economy of feudal Europe
(3) command economy of the Soviet
(2) mercantile economy of 18th century
Union
Europe
(4) market economy of the United States
41) The economic policies of the Soviet Union traditionally emphasized the production of
(1) automobiles for export
(3) consumer goods
(2) building materials for luxury housing
(4) heavy industrial goods
42) What does this cartoon suggest about the introduction of the EURO in Europe?
(1) Additional countries were created.
(2) Isolation among nations increased.
(3) Communist economic policies were adopted.
(4) Economic barriers between nations decreased.
43) The Organization of Petroleum Exporting Countries (OPEC) is best known for its efforts to
(1) develop workable alternatives to fossil fuels
(2) bring Western oil technology to the Middle East
(3) stop the export of oil to non-Arab nations
(4) establish production quotas to control the price of oil
44) Since the creation of the Organization of Petroleum Exporting Countries (OPEC), member nations have
joined together to
(1) determine the supply of oil on the world market
(2) establish a policy of independence in trade
(3) maintain a low price of oil per barrel
(4) isolate themselves from the rest of the world
45) In China, the Great Leap Forward was an attempt to
(1) promote democratic reform
(2) end the private ownership of land
(3) strengthen economic ties with Europe
(4) increase agricultural and industrial production
46) In the People’s Republic of China, which factor best reflects Marxism?
(1) communal work teams on farms
(2) ownership of small farms by individuals
(3) small family-owned businesses in villages
(4) foreign influence on the economy
47) The Four Modernizations of Deng Xiaoping in the 1970s and 1980s resulted in
(1) an emphasis on the Five Relationships
(2) a return to Maoist revolutionary principles
(3) a move toward increased capitalism
(4) the end of the communist system of government
48) During the 1980’s and 1990’s, the economic policies of China, supported by Deng Xiaoping, have led
directly to
(1) an expansion of China’s colonial empire
(2) an increase in trade with the West
(3) a return to a strict command economy
(4) the success of the commune system
49) Which statement best explains China’s economic shift toward capitalism in the 1980’s and early 1990’s?
(1) China’s economic policies were directly influenced by the success of the Soviet economic system
(2) the Tiananmen Square massacre resulted in major economic reforms in China
(3) the success of the Cultural Revolution resulted in the increased westernization of China
(4) communist economic policies were not meeting the needs of the society
50) The goal of Mikhail Gorbachev’s policies of perestroika and glasnost was to
(1) expand collectivization and communes
(2) resume development of Soviet nuclear weapons
(3) stimulate economic growth and political discussion
(4) stop expansion of the North Atlantic Treaty
51) The main purpose of the Organization of American States (OAS) is to
(1) integrate the economies of Latin American nations
(2) encourage United States military involvement in the region
(3) destroy the power of Colombian drug lords
(4) provide a way to resolve regional problems peacefully
52) Which situation would best encourage economic development in most African nations today?
(1) increasing the population growth rate
(3) reducing the number of skilled
(2) attracting investment capital
workers
(4) depleting their natural resources
53) In many Latin American nations, reliance on the production of a single cash crop has led to
(1) economic dependence on other nations
(4) development of a strong industrial
(2) rapid repayment of foreign loans
economy
(3) a high per capita Gross National Product
• “Reliance on Imported Oil Raises Concerns in China, Europe, and the United States”
• “Coca-Cola Accused of Wasting Precious Water inIndia”
• “Competition for Control of Cobalt Mines CausesViolence in Congo”
54) These headlines best illustrate the economic concept of
(1) inflation
(3) boycott of goods
(2) embargo
(4) scarcity of resources
55) What is the best title for this cartoon?
(1) “Breaking Through the Iron Curtain”
(2) “Globalization Reaches the Wall”
(3) “Separating East from West”
(4) “A Road to Cultural Uniqueness”
56) India has developed a mixed economy that
(1) guarantees government control over the economy
(2) provides open competition without government interference
(3) blends free enterprise with socialism
(4) relies on the traditional barter system
57) The economic trend represented in this chart is most likely an effect of the creation of the
(1) Organization of American States (OAS)
(2) North Atlantic Treaty Organization (NATO)
(3) North American Free Trade Agreement (NAFTA)
(4) Organization of Petroleum Exporting Countries (OPEC)
58) Which concept is illustrated in this cartoon?
(1) nonalignment
(2) nationalism
(3) interdependence
(4) socialism
59) A major purpose of the Organization of African Unity (OAU), the Organization of American States (OAS),
and the European Union (EU) is to
(1) encourage political and economic cooperation between member nations
(2) end colonialism in member nations
(3) control overpopulation in member nations
(4) provide military assistance to member nations
60) In recent years, a major success of the European Union (EU) has been the
(1) creation of a single military force
(2) rejection of national sovereignty
(3) adoption of a single language
(4) elimination of trade barriers
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