Economic Systems Review Quiz

What is the perspective of the following quote:

"POVERTY AND SUFFERING ARE NOT DUE TO THE UNEQUAL DISTRIBUTION OF GOODS AND RESOURCES BUT TO THE UNEQUAL DISTRIBUTION OF CAPITALISM"

• Anti-capitalist because he believes that capitalist systems are unable to distribute goods and services equitably

• Pro-capitalist because he argues that capitalist systems continue to expand the production of goods and services.

• Anti-Capitalist because he implies that capitalist systems encourage the wasteful use of natural resources.

• Pro-capitalist because he suggests that hardships are lessened if capitalism is more universally implemented

By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it.

The author of the quote would believe that self interest...

• Creates economic instability

• Encourages class struggle

• Creates broad based prosperity

• Encourages the exploitation of resources

Which of the following is NOT one of the questions that ALL economic systems answer?

• What will we produce?

• How will we produce it?

• For whom will it be produced?

• When does production start?

In which economic system is ALL property owned by individuals?

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

What is capitalism?

• government control of production and goods
• private control of production and goods for profit
• employee control of production, goods, and profit
• international control of production and goods for profit

Laissez-faire means...

• Hats off
• Hands around
• Hands off
• Hands on

According to the law of supply and demand, how does the scarcity of product that is in high demand affect prices?

• Scarcity of a high demand product stablizes the market value of the product.
• Scarcity of a high demand product increases the market value of the product.
• Scarcity of a high demand product neutralizes the market value of the product.
• Scarcity of a high demand product decreases the market value of the product.

According to the law of supply and demand, how does over-manufacturing of a product affect the price?

• Over-manufacturing reduces the price of a product.
• Over-manufacturing creates jobs to improve the economy.
• Over-manufacturing raises prices to offset production costs.
• Over-manufacturing leads to peaks in the business cycle.

What does communism believe in?

• Economic system with individuals having private ownership of money/production.
• Maintaining total control over society. 
• Economic equality through elimination of private property.
• A government of the people, by the people, for the people.

This person wrote "The Wealth of Nations" and believed the government should have a limited role in business.

• John Locke
• Adam Smith
• Charles Fourier 
• Karl Marx