Economic Systems

Which of the following is not a type of economic system?

• Communism

• Free enterprise

• Socialist

• Totalitarian

In a free-enterprise economy,

• people are free to produce whatever they wish and to buy whatever they can afford.

• the government controls every aspect of the economy.

• the government owns large businesses, but private ownership of small businesses is encouraged.

• there is a mix between different types of economies.

In a socialist economy,

• people are free to produce whatever they wish and to buy whatever they can afford.

• the government controls every aspect of the economy.

• the government owns large businesses, but private ownership of small businesses is encouraged.

• there is a mix between different types of economies.

The goal of a communist economy is to

• achieve a classless society; equality among all workers

• let supply and demand control the economy

• give control of the economy to consumers and sellers

• adhere to tradition when it comes to the economy

Which of the following is not true of a Free Enterprise economy?

• Supply & demand controls the economy

• the three economic questions are answered by consumers & sellers

• There is little government control of business

• it was started by Karl Marx.

Supply & demand is a principle that fits which type of economic system?

• Free enterprise

• Communism

• Socialism

• Traditional

Private ownership of property is encouraged by which of the following economic systems?

• Free enterprise; communism

• Free enterprise; socialism

• Communism; socialism

• socialism; traditional

Economic decisions are decided entirely by the government in which economic system?

• Socialism

• Communism

• Mixed

• Free enterprise

Karl Marx is credited with the starting of

• Communism

• Socialism

• Free enterprise

• Mixed

Which of the following is true of traditional economies?

• economic decisions are determined by the government.

• People have access to private property.

• the production of goods is based on custom.

• they resemble a communist economic system.