Economic Systems

The fact that every society faces the problem of economic scarcity most nearly means that

• competition is a basic part of all economic systems

• there are limited resources and unlimited wants

• consumers generally do not spend wisely

• the supply usually equals the demand for any specific item

An economist is a social scientist who focuses on the study of the

• development of spiritual practices

• establishment of legal systems

• creation and implementation of social class systems

• production and exchange of goods and services

What three economic questions are asked when studying the similarities of traditional, command, market, and mixed economies among nations of the world?

• What to produce, why to produce, when to produce?

• What is your opportunity cost, what economic resources are needed, why should these resources be used?

• What is produced, how is it produced, and for whom is it produced?

• What is your opportunity cost, why are economic resources needed, when should these resources be used?

This person wrote "The Wealth of Nations" and believed the government should have a limited role in business.

• John Locke
• Adam Smith
• Charles Fourier 
• Karl Marx

Which statement is a description of a market economy or capitalism?

• Customs, religions, and traditions determine most economic decisions.

• The national government controls all resources, labor supply, and means of production.

• Individual decision making and supply and demand greatly influence basic economic decisions.

• Government planning agencies make some economic decisions and private businesses make others.

According to Adam Smith and his theory of laissez faire, what role should the government play in the economy?

• The government should play a role in helping businesses make as much money as possible.

• The government should make very few laws that affect businesses.

• The government should restrict which businesses are allowed to open.

• The government should regulate businesses to make sure they use safe practices.

Which is NOT a characteristic of Capitalism?

• Market Economy
• Supply and Demand
• Freedom of Competition
• Classless Society

This economic system aims to make the best products for the lowest amount of money, which often times leads to bad treatment of workers.

• Socialism
• Communism
• Mixed Market Economy 
• Capitalism 

The founder of communism 

• Adam Smith
• John Locke
• Karl Marx
• Rousseau 

What societal problem did Karl Marx attempt to address in his manifesto? Choose the best answer.

• The exploitation of the poor by the rich

• The low quality of good produced at large factories.

• Unfair laws that allow poor people to be sent to prison