1.3 Economic Systems

Multiple Select

What are the three basic questions every society must answer due to scarcity?

• What goods and services should be produced?

• How should these goods and services be produced?

• For whom should it be produced?

• Why should goods and services be produced?

Multiple Choice

What is the goal of an economic system?

• To efficiently allocate resources and meet the needs of society.
• To eliminate all forms of trade and commerce.
• To create a monopoly in the market.
• To maximize profits for large corporations.

Multiple Choice

This type of economy is passed down through family traditions. They learn from their parents. 

• Traditional 
• Market 
• Mixed 
• Command 

Multiple Choice

What is one of the main advantages of a traditional economy?

• It allows for rapid technological innovation.

• It typically revolves around the family unit.

• It provides a wide range of modern conveniences.

• It relies heavily on international trade.

Multiple Select

In a market economy, who primarily decides what goods and services should be produced?

• The government

• Consumers

• Producers

• International trade partners

Multiple Choice

The government takes a hands-off approach to business.

• communism

• socialism

• laissez-faire

• invisible hand

Multiple Select

What is the driving force(s) in a Market Economy?

• The Government

• Self-Interest

• Competition

• Tradition

Multiple Choice

What is the main concept introduced by Adam Smith in his book "The Wealth of Nations"?

• Invisible Hand

• Market Equilibrium

• Supply and Demand

• Consumer Sovereignty

Multiple Choice

According to Adam Smith, what motivates individuals to find the most advantageous employment?

• Altruism

• Self-interest

• Government incentives

• Social pressure

Multiple Choice

What does Adam Smith mean by the phrase "invisible hand" in the context of the baker's actions?

• The baker acts out of kindness

• The baker's actions benefit society unintentionally

• The baker is forced to bake bread

• The baker only cares about profit

Multiple Choice

A command economy is characterized by which of the following?

• High levels of competition among businesses

• Minimal government intervention in economic decisions

• Government making all economic decisions

• Consumer preferences determining production

Multiple Choice

Which of the following best describes a mixed economy?

• An economy where all decisions are made by the government.

• An economy that operates without any government intervention.

• An economy that incorporates elements of both market and command economies.

• An economy where decisions are made solely through market forces without any regulation.

Multiple Choice

Who or what answers the basic economic questions in a mixed economy?

• Individuals and Businesses
• Government
• Custom
• Individuals, Businesses, and Government

Open Ended

Based on the advantages and disadvantages of a market economy - why do you think societies allow some government involvement in the economy?