Economic Systems

True/False: Communist systems trust the free market.

• True

• False

Which of the following is a capitalist belief?

• all property should be publicly owned

• all of society's resources should be shared

• private companies will benefit society

• the means of production are commonly owned

Which of the following is another name for a centrally planned economy?

• capitalism

• socialism

• market

• communism

An economy where the government owns some of the country's industry but still has private property would be best classified as a ________ economy.

• command

• mixed

• market

• communist

What economic system emphasizes "collectivism?"

• communism

• capitalism

• market

• mixed

Which of the following is a downside to communism?

• high levels of inequality

• limited to no choice with buying

• businesses can pay as little as they want

• businesses can set any price

Which of the following is a downside to capitalism?

• leads to income inequality

• promotes creativity and innovation

• difficult to accumulate wealth

• limited freedom to change prices

What is a market economy?

• the government determines the prices of the goods

• production and prices are determined by unrestricted competition between privately-owned companies

• the central government owns all the factories and airports

• the central government makes all the economic decisions and determines how to distribute the goods produced

True/False: In a communist society, the government determines how much sugar should be produced.

• True

• False

What is a market?

• Wall Street

• An online store

• any place where people sell goods and services

• A brick and mortar store