Economic Systems Quiz

Who is considered the founder of modern economics?

• Karl Marx

• Adam Smith

• Thomas More

• Karl Marx

Which book did Adam Smith write?

• The Communist Manifesto

• Das Kapital

• An Inquiry into the Nature and Causes of the Wealth of Nations

• Utopia

What economic system did Adam Smith challenge?

• Mercantilism

• Socialism

• Communism

• Capitalism

According to Adam Smith, a nation would be wealthier if it engaged in:

• Free trade

• Command economy

• Traditional economy

• Mixed economy

What term describes the unintended social benefits of an individual's self-interested actions?

• Invisible Hand

• Voluntary Exchange

• Consumer Sovereignty

• Specialization

Which economic system is based on customs and beliefs handed down from generation to generation?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

In a command economy, who makes all economic decisions?

• Consumers

• Producers

• Government

• Private individuals

Which economic system is based on individual choice and voluntary exchange?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

What is the economic system in which the government owns some or all the factors of production?

• Socialism

• Communism

• Capitalism

• Market economy

What is the idea that consumers have the ultimate control over what is produced?

• Private Property Rights

• Limited Government Involvement

• Competition

• Consumer Sovereignty