Economic Systems and Nations

What are the three things that a social order needs to figure out in order to have an economic system?

• What to produce, how to produce it, and who gets it

• Where to produce, when to produce it, and why it is produced

• Who to produce, when to produce it, and where it is produced

• Why to produce, how to produce it, and where it is produced

In a planned economy, who controls the factors of production?

• The government

• Private individuals

• Foreign corporations

• Non-profit organizations

What is the main goal of communism?

• Abolition of private property

• Equal distribution of wealth

• Classless society

• Government control of production

Which countries are examples of socialist economies?

• China, Cuba, and the former Soviet Union

• United States, Canada, and Germany

• Japan, South Korea, and Australia

• Brazil, India, and South Africa

What is a command economy?

• An economy where production is entirely controlled by the government

• An economy where production is entirely controlled by private individuals

• An economy where production is entirely controlled by foreign corporations

• An economy where production is entirely controlled by non-profit organizations

In a free market economy, who owns the factors of production?

• Private individuals

• The government

• Foreign corporations

• Non-profit organizations

What is the concept of the invisible hand in a free market economy?

• Individuals and businesses meet society's needs when they seek their own self-interest

• Individuals and businesses meet society's needs when they work together

• Individuals and businesses meet society's needs when they follow government regulations

• Individuals and businesses meet society's needs when they rely on charity

What are some of the things that the government must do in a free market economy?

• Maintain the rule of law, provide public goods and services, and step in when markets get things wrong

• Maintain the rule of law, provide private goods and services, and step in when markets get things wrong

• Abolish the rule of law, provide public goods and services, and step in when markets get things wrong

• Abolish the rule of law, provide private goods and services, and step in when markets get things wrong

Why does the government step in to regulate production in a free market economy?

• To ensure safety and protect the environment

• To control prices and limit competition

• To promote monopolies and increase profits

• To restrict consumer choices and limit innovation

What type of economy do most modern economies have?

• Mixed economies with both free markets and government intervention

• Command economies with complete government control

• Free market economies with no government involvement

• Socialist economies with public ownership and control