Economic Systems U4

Who is known as the father of modern economics?

• Milton Friedman           

• John Maynard

• Adam Smith

• Fredrich Hayek

A command economy is an umbrella term for any controlled economic system. Which two ideologies would fall under this umbrella?

• capitalism and socialism

• traditionalism and communism

• socialism and communism

• communism and capitalism

A mixed economy includes ___________ and __________ principles in its system.

• capitalism; communism

• free market; capitalism

• capitalism; profit motive

• free market; socialism

What are characteristics of a mixed economy?

• protection of private property

• supply and demand determine fair prices

• innovation is rewarded

• all of the answers are correct

What are characteristics of a command economy?

• establish a classless society

• government owns the means of production

• supply and demand are allowed to set prices

• only a and b are correct

The struggle among producers for the dollars of consumers; the rivalry among sellers to attract customers while lowering costs:

• profit motive

• public disclosure

• competition

• open opportunity

Specific groups which represent interests that support and lobby for areas of special need:

• Households

• Investors

• Representatives

• Interest groups

Socialist Ideas that promote socialism as the best economic system:

• production for use, rather than for profit

• A fair and equal distribution of wealth and material resources among all people

• No more competitive buying and selling in the market

• All of the answers are correct

The U.S. government makes sure that producers provide consumers with important information as a result of:

• environmental protection laws

• zoning laws

• public disclosure laws

• private property laws

Which economist argued that demand drives supply and that healthy economies spend or invest more than they save?

• Adam Smith

• Milton Friedman

• John Maynard

• Fredrich Hayek