Econ Unit 1 Quiz 3 Review

Which economic system is where the government owns the means of production?

• Traditional

• Command

• Market

• All of the above

Which type of economy is the United States?

• Traditional

• Market

• Command

• Mixed

In a command economy, which of the following is true?

• Producers and consumers control all economy activity

• Property rights are given to all individuals & private ownership is protected

• Government controls all economic activity

• Government turns all control over to supply & demand

Which method of allocating resources gives a fair chance to everyone

• Majority Rule

• Lottery

• Force

• Contest

In a market economy, the government provides public goods and services that the private sector cannot be relied upon to supply. These may include all of the following EXCEPT

• Firefighters

• Teachers

• Grocery Stores

• Highways

Why does the government regulate certain industries?

• Private companies are unable to generate demand for their products without government intervention.

• The government is better able to determine the needs of consumers than private companies

• The government seeks to encourage businesses to return to practices that were profitable in the past.

• Businesses tend to seek profit without regard to possible negative externalities

Why does the government often provide public goods and services in mixed economies?

• There are goods and services that businesses don't provide because there isn't profit to be made

• Private businesses can not be trusted to provide these goods

• The government is just more efficient at providing some goods

• The government does not provide goods and services, it only support private businesses

Ultimately, in a free enterprise system, customers make businesses profitable. Their actions are an example of which of the following?

• Consumer Sovereignty

• Customer Superiority

• Consumer Satisfaction

• Customer Power

Which economic goal are command economies best at?

• Growth

• Efficiency

• Equality

• Freedom

Which economic system is best at achieving the economic goal of freedom?

• Market

• Command

• Traditional

• Mixed