Economic Systems Review

Mark and Tom are having a discussion about how the market should ideally function. Mark believes that the government should often step in and offer a safety net for businesses and individuals. The focus of government control in Mark's ideal economy would be the areas of health care, education, and welfare.

Mark's ideas most commonly align with which economic system?

• Socialism

• Communism

• Capitalism

• Democracy

Private ownership; Competition brings out the best in people; everyone works for their own wealth; little government interference.

This describes which economic system?

• Communism

• Free Market/Capitalism

• Socialism

Which of the following would be examples of a market economy approach?

• The president allows inflation to rise without interfering

• The government provides additional funding for welfare programs

• The national government takes control of public education

• Decision-making power lies in the hands of the individuals

The United States has a mixed economy that combines which two economic philosophies?

• Capitalism and Laissez-Faire

• Capitalism and Communism

• Capitalism and Socialism

• Socialism and Communism

“Above all, the government will have to take control of industry and of all the branches of production out of the hands of... competing individuals, and instead institute a system as a whole, that is for the common good, according to a common plan, and with the participation of all members of society. ”

Which economic system best aligns with the quote?

• Free Market

• Socialism

• Communism

An economic system in which the means of production are privately owned and money is invested in businesses to make a profit. The key economic decisions emerge from the interaction of buyers and sellers in a free market is called....

• Capitalism

• Socialism

• Communism

• Mercantilism

Which of the following would exist in a socialist country?

• Universal health care (the government provides health insurance for everyone)

• Government ownership of all land and property

• Tax breaks (low taxes) for the mega rich

• Private schools only, no public schools

What would never happen in a truly communist society?

• Private property would be abolished

• People will work

• Some people will be richer than other people

• People would be of the same social class

An economic system where the means of production are privately owned, and the money is invested to make a profit. The key economic interactions come from the interaction between buyers and sellers.

• Communism

• Socialism

• Capitalism

Which of these terms would best represent Karl Marx's theory of communism?

• Authoritarian

• Common Property

• Bourgeoisie

• Competition