Unit 2 Test Review - Economic Systems OL

Amelia just graduated from a Texas college with a degree in art history, much to her parents' dismay. They wanted her to study business. Which economic characteristic did Amelia take advantage of when choosing her career path?

• property rights

• incentives

• economic freedom

• role of government

The economic system that answers the What, How and For Whom questions by central authority (government) is a:

• market

• command

• traditional

• soviet

The economic system that answers the What, How and For Whom questions using prices determined by supply and demand is a:

• market

• traditional

• command

• soviet

Olivia lives in a country with a socialist economic system. She has Type II Diabetes. The government pays all of her medical costs because Olivia is on a limited income. However, she can only see the one doctor on the government's list. Which economic characteristic is her socialist country missing?

• property rights

• competition

• incentive

• economic freedom

In a free enterprise economic system, the government should protect ___________ as expressed in _____________, but does not become too involved in _______________, taxation, or fiscal policy.

• the economy, the Constitution, property rights

• the Constitution, property rights, the economy

• property rights, the Declaration of Independence, the economy

• property rights, the Constitution, the economy

The economic system that answers the What, How and For Whom questions the way they have always been answered is a:

• market

• traditional

• command

• soviet

George and Martha bought a new home in a lovely new neighborhood. When George erected a large, 25-foot flagpole and began flying the U.S. and Texas flags, his neighbors complained. When he did not take down the flagpole, his neighbors collected signatures on a petition and took it to a city council meeting. Which of the following economic characteristics of the free enterprise system will probably help George and Martha keep their flagpole?

• economic freedom

• competition

• role of government

• property rights

Karl Marx wrote two books The Communist Manifesto and Das Kapital that talked about his ideas of _________________?

• communism

• capitalism

• socialism

Carlos works in a government-owned widget factory in Cuba. While the factory superintendent sets quotas for

how many widgets should be produced, no one ever meets the quota, and the quality of the widgets is low. However, they all get paid the same amount each week. Which missing economic characteristic is causing this situation to happen in Cuba?

• property rights

• incentives

• competition

• economic freedom

What type of economic theories did Adam Smith write about in The Wealth of Nations book?

• communist

• capitalist

• socialist