2.3 Economic Systems

Multiple Choice

Which of the following is most likely a function of government in an economic system, as shown by the green arrows in the diagram?

• Collecting taxes and providing subsidies

• Producing all goods and services directly

• Setting prices for every product

• Eliminating all private businesses

Multiple Choice

What are the four factors of production in economics?

• Land, Labor, Capital, Entrepreneurship

• Land, Money, Technology, Labor

• Labor, Capital, Technology, Management

• Land, Labor, Money, Entrepreneurship

Fill in the Blanks

In capitalism, prices are determined by

and demand.

Multiple Choice

In a capitalist system, who owns the means of production?

• The government

• Individuals or companies

• The military

• The community

Multiple Choice

Who are the two main theorists whose work forms the basis of socialism?

• Adam Smith and John Locke

• Karl Marx and Frederich Engels

• Vladimir Lenin and Joseph Stalin

• John Maynard Keynes and Milton Friedman

Fill in the Blanks

Under communism, society is supposed to be

, meaning there are no social classes.

Multiple Choice

In the United States, which of the following is an example of a public sector service?

• Private schools

• Roads

• Fast food restaurants

• Tech startups

Multiple Select

Which of the following are examples of government regulation in the workplace in the US?

• Minimum wage laws

• Workplace safety rules

• Company profit sharing

• Licensing requirements