Economic Systems and Nations Quiz-Crash Course

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

• What to distribute, how to distribute it, who to produce it

• Why to produce, who to produce it, when to distribute it

• When to produce, where to produce it, how to distribute it

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

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

• Individuals

• International organizations

• Businesses

• Government

What is the major input required to produce stuff according to Karl Marx?

• Money

• Technology

• Marketing

• Labor

What is the concept in free market economies where businesses meet society's needs when they seek their own self-interest?

• Social welfare

• Invisible hand

• Government intervention

• Central planning

What is the role of the government in free market economies according to Mr. Clifford?

• Stay completely hands-off, provide subsidies to businesses, regulate all production

• Control all factors of production, distribute output equally, maintain a classless society

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

• Tax households and businesses, borrow money, provide transfer payments to individuals in poverty

What is the term used to describe economies that are neither completely free market nor planned?

• Binary economies

• Polarized economies

• Hybrid economies

• Segregated economies

What is the circular flow model used to explain in the modern economy?

• Interactions between businesses, individuals, and the environment

• Interactions between businesses, individuals, and the financial sector

• Interactions between businesses, individuals, and international trade

• Interactions between businesses, individuals, and the government

What is the main takeaway about modern economies according to Adriene?

• They are completely free market

• They are completely planned

• They are mixed economies with both free markets and government intervention

• They are socialist market economies

What did Deng Xiaoping say regarding the debate over free markets and government control?

• It doesn't matter whether a cat is black or white, if it catches mice, it's a good cat

• It's important to have a completely free market economy

• Government control is always better than free markets

• There are no solutions, only trade-offs

What is the main message about economic theories and models according to Adriene?

• They need to be supported with solutions that get the job done, as opposed to getting stuck in one ideology

• They are the only way to govern the affairs of billions of people

• They are always perfect in the real world

• They should be followed without any flexibility