Economic Systems and the Modified Free Enterprise System Quiz

The situation where women tend to crops and raise children while men hunt is often found in a

• a. Command economy

• b. Traditional economy

• c. Market economy

• d. Mixed economy

Government officials deciding the distribution of all resources is a feature of a

• a. Market economy

• b. Command economy

• c. Traditional economy

• d. Mixed economy

Producers and consumers drive the economy of a

• a. Market economy

• b. Traditional economy

• c. Command economy

• d. Mixed economy

According to Karl Marx, all of history is a struggle between

• a. Businesses

• b. Classes

• c. Governments

• d. Individuals

In economic terms, laissez faire means that the government

• a. stays out of the marketplace

• b. gets involved in the marketplace

• c. regulates the marketplace

• d. controls the marketplace

Elements of traditional, command, and market economies are combined in a

• a. Centrally-planned economy

• b. Mixed economy

• c. Market economy

• d. Traditional economy

Moving steel-mills from private ownership to public ownership is an example of

• a. Nationalization

• b. Privatization

• c. Deregulation

• d. Subsidization

The influence of the global economy is shown when a shortage of

• a. Florida oranges causes orange prices to rise in the U.S.

• b. coffee in Kenya causes coffee prices to rise in the U.S.

• c. wheat in Canada causes wheat prices to rise in the U.S.

• d. oil in Saudi Arabia causes oil prices to rise in the U.S.

Which of the following statements about communism is accurate?

• a. Workers are often employed by private firms

• b. Resources are owned by the government

• c. Resources are owned by the individuals

• d. Workers are often self-employed

Which is a typical occurrence in a free enterprise system?

• Individuals are not allowed to start their own businesses.
• Individuals have the freedom to start their own businesses and make economic decisions based on their own self-interest.