Economics Systems

What is the goal of a mixed economic system?

• increase the power of politicians

• to transition eventually into a command system

• prevent the abuses and shortcomings of both the command and market systems

• smooth out economic cycles

What is the only way that capitalists say can ensure everyone has the chance to be wealthy?

• Encourage government regulations to create jobs for everyone even when there is not enough work.

• The government leaves alone those who are wealthy.

• Raise taxes.

• Spread profits equally among all people.

What is a criticism of the market economy?

• History reveals that market economies eventually fail.

• It provides no incentive to innovate.

• It does not promote fairness or take care of those who have difficulties succeeding within the system.

• Few people can experience success under such a system.

Few people can experience success under such a system.

• command

• mixed

• traditional

• market

Which system provides little chance to succeed or gain wealth?

• traditional

• command

• market

• mixed

Which system has profit as a primary motivating factor?

• mixed

• market

• command

• traditional

In which system does the government control some vital industries while allowing free markets in others?

• traditional

• mixed

• command

• market

According to the tenets of the market economic system, the ___ has little to no role in the country’s economy.

• government

• consumer

• worker

• businessman/manufacturer

___ was an economic historian who heavily influenced the British Labour Party after World War I to move the country towards a mixed economy.

• Lloyd George

• John Adams

• Winston Churchill

• RH Tawney

Which is not a characteristic of a Market Economy?

• the pursuit of self-interest

• private ownership of property and business

• consumer power in directing the economy

• exclusively government ownership of resources