Economic Systems and Sectors Quiz

In a centrally planned economy, who makes all the decisions about the production of goods and services?

• Government

• Citizens

• Private individuals

• Firms

What is a drawback of a centrally planned economy?

• There is no incentive for businesses to become more efficient

• Taxes tend to be lower

• Prices tend to be lower

• Consumers have a wide range of goods and services to choose from

Which country is an example of a free enterprise economy?

• Ireland

• United States

• China

• Russia

What is a benefit of a free enterprise economy?

• Consumers have a wide choice of goods and services

• Essential services are made available to all sections of the population

• Limited income available for spending on public services

• Government regulation reduces competition

What is a characteristic of a mixed economy?

• There is no government involvement in business

• The government controls all areas of business

• Consumers have no choice between public and private operators

• Laws exist to protect consumers from dangerous and sub-standard goods and services

What is the public sector of the economy responsible for?

• Generating funding from the Local Property Tax

• Providing services to the citizens of the country

• Allocating money in the national budget

• Operating businesses owned by private individuals

What are some of the services provided by local authorities?

• Public parks and green areas

• All of the above

• Planning permission service

• Services and housing for Traveller families in their area

What is the voluntary sector also known as?

• Mixed Sector

• Public Sector

• Third Sector

• Private Sector

What are the main characteristics of the voluntary sector?

• They are controlled by the government

• They always reinvest any profits they make in furthering their aims

• They aim to achieve some social objective

• They generate funding from the Local Property Tax

What is the private sector of the economy responsible for?

• Generating funding from the Local Property Tax

• Operating businesses owned by private individuals

• Allocating money in the national budget

• Providing services to the citizens of the country