Economic Unit Test and Quiz Review

The Opportunity to make a profit drives people to put their money at risk.

Producers determine the supply, or availability of a product.

Consumers determine the demand for a product. 

The features described in these statements best describes the working of a-

• Traditional Economy

• Free Enterprise Economy

• Socialist Economy

• Communist Economy

In Indonesia, the government own large industries and sets some prices. However, private businesses are also encouraged and several hundred are actively traded on the Indonesian Stock Exchange. This country's economic system can best be classified as -

• Traditional

• Free Enterprise

• Socialist

• Communist

Which is a central characteristic of a free market economy?

• The government owns all of the means of production.

• All wage earners are paid the same amount.

• Labor Unions are prohibited.

• Businesses are driven by the desire for profits.

In which economic system would you expect the widest selection of consumer goods?

• Traditional

• Free Enterprise

• Socialist

• Communist

In a traditional economy, information about the way goods are produced is passed from one generation to the next generation by the --

• Family

• Legal System

• Public Schools

• Government

Which is a major feature of an economy based on subsistence farming?

• Most adults work outside the home.

• Farmers compete with each other.

• Farmers raise just enough crops for their family to survive.

• The government decides which crops will be grown.

Based on the information in the article, the Minister of Economics most likely lives in a country that has a-

• Traditional Economy

• Socialist Economy

• Communist Economy

• Free Enterprise Economy

Which group has the greatest influence in determining what goods and services will be produced in a communist economic system?

• Farmers

• Consumers

• Government Leaders

• Business Leaders

In a Socialist economic system, the government --

• has little say in what goods are made.

• does not influence the distribution of goods and services

• guarantees all consumers a high income

• often owns major business

Which heading best completes the partial outline below?

• Types of Economic Systems

• Characteristics of a Free Enterprise Economy

• Structure of a Socialist Economic System

• Cottage Industries