ECON: 1.08 Quiz

Which kind of economic system does a socialist country have?

• • 
    

    free-market

• distributive

• command

• mixed

Which kind of economic system does a capitalist country have?

• command

• free-market

• mixed

• planned

Which describes the system in a free-market economy?

• run by the government

• based on decisions by producers and consumers

• • 
    

    uses command principles

• designed to protect equity and security

According to the circular-flow model, which do producers provide to consumers?

• resources

• wages

• labor

• capital

According to the circular-flow model, which is something consumers do that influences producers?

• purchase goods and services

• provide wages and profits

• produce goods and services

• use land and capital

Which is the main goal of a socialist system?

• guarantee free choice

• provide equality

• motivate innovation

• maximize profit

Which of these is most important in a free-market system?

• providing equality of wealth

• making allocation decisions for the entire nation

• protecting private property rights

• providing security from poverty

Which cannot be done by the government in a command economy?

• setting wages for workers

• set prices for goods and services

• allocating resources for maximum production

• deciding what goods consumers buy

Which best states the purpose of the laws against theft, fraud, and coercion that exist in a free-market society?

• stimulating growth

• guaranteeing efficiency

• ensuring innovation

• protecting free choice

What is the purpose of a free-market system?

• to protect the conditions that enable specialization

• to stimulate the growth of the gross domestic product

• to allow consumers and producers to make their own decisions

• to raise the standard of living for everyone in the country