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 for, how much to produce, and when to produce it

• Why to produce, where to produce, and who gets it

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

• The government

• Private individuals

• Foreign corporations

• Non-profit organizations

According to Karl Marx, what is the theory of communism summed up in?

• Abolition of private property

• Equal distribution of wealth

• Classless society

• Government control of production

Which countries are often considered socialist?

• China, Cuba, and the former Soviet Union

• United States, Canada, and Australia

• Germany, France, and Italy

• Japan, South Korea, and Singapore

What is a command economy?

• An economy completely controlled by the government

• An economy where businesses make all the decisions

• An economy with no government intervention

• An economy with equal distribution of wealth

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 meeting society's needs when they seek their own self-interest

• Government control of production and distribution

• Equal distribution of wealth among individuals

• Central planning of the economy by the government

What is one of the roles of the government in a free market economy?

• Maintain the rule of law

• Control all aspects of production

• Provide free goods and services to everyone

• Eliminate competition among businesses

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

• To ensure safety and reduce pollution

• To control prices and maximize profits

• To eliminate competition and create monopolies

• To restrict consumer choices and limit innovation

What is the circular flow model in an economy?

• The flow of goods, money, and resources between households, businesses, and the government

• The flow of goods and services between countries

• The flow of money and resources within a single business

• The flow of goods and services within a single household