Economic Systems Quiz

Mason, Abigail, and Nora are discussing the economic systems of different countries. Mason argues that a Planned Economy has some disadvantages. Which of the following points made by Mason could be a disadvantage of a Planned Economy?

• Private ownership of resources

• Inefficient use of resources

• Lack of government control

• Equal distribution of wealth

Which of the following is a feature of a Mixed Economy?

• Private ownership of resources

• Central planning of the economy

• Government control of production and distribution

• Equal distribution of wealth

What is an advantage of a Market Economy?

• Equal distribution of wealth

• Government control of production and distribution

• Guaranteed employment for all citizens

• Efficient use of resources

You are a student studying different types of economies in your economics class. Your teacher asks you, 'Can you give me an example of a country that operates on a Market Economy?' Which country would you choose?

• North Korea

• China

• Cuba

• United States

In a country where the economy is planned, who would be responsible for making decisions about what goods should be produced and how they should be distributed?

• The government

• Individuals and businesses

• Consumers

• The stock market

You are the mayor of a city and you need to establish a system to manage the city's resources. What would you call this system?

• A system that determines the value of goods and services

• A system that regulates the stock market

• A system that controls the distribution of wealth

• An economic system

What necessarily describes the market system?

• resources are allocated through demand and supply

• an economy with both a private and public sector

• limited resources but unlimited wants

• when all resources are used to produce consumer goods

Imagine you are living in a Mixed Economy. How would your economy deal with questions related to the allocation of resources?

• By ensuring an equal distribution of wealth among all citizens

• By using a combination of government regulations and market forces

• By allowing private ownership of all resources

• By implementing central planning by the government

Who makes decisions about production and distribution in a Market Economy?

• The government

• Individuals and businesses

• Consumers

• The stock market

What encourages firms to produce what consumers demand?

• The chance to experience high unit cost of production

• The desire to attract new firms into the market

• The chance to earn a high profit

• The desire to keep revenue as low as possible