Economic Systems Marathon

Which of the following is NOT a characteristic of the free market system?

• private ownership of assets

• right to profit from individual effort

• state control of factors of production

• private control of investment

Communism primarily relies on a system of ________.

• private business ownership

• competitive pricing and marketing

• market-generated supply and demand

•  government controlled economic activity

A system in which individuals, rather than the government, make the majority of economic decisions is commonly referred to as a ________.

• command economy

• market economy

• private economy

• mixed economy

In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are planned by ________.

• government officials

• private industries

• individual entrepreneurs

• local trade associations

In Country X, all dimensions of economic activity, including pricing and production decisions, are determined by the central government. Which term best describes Country X?

• market economy

• mixed economy

• command economy

• traditional economy

Which of the following is most typical of a command economy?

• Consumers have choices of many substitutes for any given product

• Quality of products and services tends to be consistent

• The prices of goods and services frequently change.

• Many products are usually in short supply.

Which of the following countries is the best example of a mixed economic model?

• United States

• France

• Australia

• United Kingdom

The tribe relied on hunting and farming for food. The boy knew he would be a farmer just like his dad had been. What kind of economic system does this describe?

• Command

• Planned

• Traditional

• Mixed

In the former Soviet Union consumers had to wait in long lines to buy everyday items like bread. They did not have many choices and the government controlled factories. What type of economy did they live in?

• traditional economy

• mixed economy

• free market economy

• command economy

Earpods have become the latest fad. Everyone wants one and stores are selling out fast. The factory increased production. This is an example of ____.

• due process

• circular flow

• consumer sovereignty

• opportunity cost