Free Enterprise and Other Economic Systems Test Review

In a command economy, who holds power over the economy?

• The people
• The government
• Beyonce
• The traditions of your ancestors

What are the three economic questions?

• What to produce? How to produce? For whom to produce?
• Who to produce? Why you produce? Like to produce?
• Why to produce? Tell who to produce? Things to produce?

If the government makes me produce 70 T-Shirts, what economic system is this?

• Mixed
• Traditional
• Command
• Market

If I produce fish for my town because my mom and dad were fishermen/fisherwomen, what economic system is this?

• Mixed
• Market
• Traditional
• Command

The country of North Korea has a dictator that makes all of the economic decisions.  What type of economy is this?

• Traditional
• Market
• Command

What can the three basic economic questions determine?

• What kind of government a country has.
• What kind of economic system a country has.
• Whether or not most people live in poverty.

Which of the following is NOT one of the characteristics of a market economy?

• property rights
• competitive markets
• freely determined prices
• centrally planned production

Government program helps pay the medical expenses for a worker who is injured on the job.  On the diagram, should this program be located in P, Q, R, or S?

• P
• Q
• R
• S

This cartoonist probably agrees that businesses would be more productive if the government

• set higher ergonomic standards for the workplace
• interfered with business less
• protected business more
• provided more public services

Which statement is NOT an assumption of market capitalism?

• the means of production will be privately owned.
• transactions will be voluntary on the part of the buyer and seller.
• the government’s economic role is minimal.
• wealth and resources are equally distributed.