Economics Review

A “free enterprise system” is a synonym for which economic system?

• Traditional Economy

• Communist Economy

• Capitalist Economy

• Command Economy

Which economic activity is dominant in a traditional economy?

• Agriculture job

• Service jobs

• Research and development

• Manufacturing of goods

Computers, trucks, and ovens would be categorized under which factor of production?

• Labor

• Natural resources

• Entrepreneurs

• Capital

Which factor of production is NOT found in all types of economic systems?

• labor

• natural resources

• entrepreneurs

• capital

In a capitalist society, what is the goal of all business and industry?

• To make social changes

• To earn a profit

• To provide basic needs

• To support the government

Which of the following is NOT a characteristic of a capitalist society?

• free competition

• people start and own businesses

• ability to own private property

• guaranteed profits for entrepreneurs

 In which economic system do people barter for goods and services? 

• Traditional Economy

• Socialist Economy

• Capitalist Economy

• Communist Economy

If you visited Communist Cuba, which of the following would be different than in the USA?

• A. They have manufacturing and factories that employ large numbers of people

• B. The government controls most industry and there is little private property

• C. Individuals can accumulate wealth through their own innovation

• D. Individuals are encouraged to open businesses

If Cuba changes to a capitalist economic system, what would be an effect on the country?

• more economic freedom for individuals

• lower standard of living

• increased government control and regulation

• more economic equality

Which type of industry includes logging, the cutting of trees, in the Amazon Basin of South America?

• manufacturing

• service

• production

• agricultural