Economic Systems

Multiple Choice

Which of the following best describes socialism?

• Government controls all means of production.

• Social ownership of the means of production, as opposed to private ownership.

• Private individuals own all means of production.

• There is no ownership of production at all.

Multiple Choice

What happens when the quantity of a good supplied by producers equals the quantity demanded by consumers?

• Equilibrium is reached and the price is settled.

• There is a shortage in the market.

• Prices continue to rise.

• Demand decreases sharply.

Multiple Select

Which of the following are characteristics of socialism?

• Economic output is shared equally throughout the population.

• The government distributes resources.

• Taxes are generally lower than in free enterprise.

• Values the collective interest over the individual.

Fill in the Blanks

In communism, the

owns the means of production.

Multiple Choice

Which economic system emphasizes personal ownership of production?

• Capitalism

• Socialism

• Communism

• Feudalism

Open Ended

Explain how property ownership is treated differently in capitalism, socialism, and communism.

Multiple Choice

Which of the following best describes the main difference between subsistence agriculture and commercial agriculture?

• Subsistence agriculture is focused on feeding the farmer's family, while commercial agriculture is focused on making profit.

• Subsistence agriculture uses advanced technology, while commercial agriculture does not.

• Commercial agriculture is only found in rural areas, while subsistence agriculture is found in cities.

• Subsistence agriculture produces more goods for sale than commercial agriculture.

Fill in the Blanks

A traditional economy relies on

, history, and time-honored beliefs to guide economic decisions.

Multiple Select

Which of the following are characteristics of a command economy?

• Organized by a centralized government

• Government officials direct all factors of production

• Production is determined by supply and demand

• The government creates a central economic plan

Multiple Choice

How does socialism differ from communism in terms of ownership and control of the means of production?

• Socialism involves social ownership, while communism involves government control of all means of production.

• Socialism involves private ownership, while communism involves social ownership.

• Both socialism and communism involve private ownership.

• Communism allows for private ownership, while socialism does not.