Level 4 Review Economic Philosophers and economic systems

Which type of economic system relies on buying and selling of producers and consumers?

• command economy

• traditional economy

• free-enterprise economy

• communist economy

Which of the following is a market economy primarily based on?

• capitalism and free enterprise

• traditionalism and command

• incentives and traditionalism

• informed judgment

Who is the father of economics?

• Friedrich Hayek

• John Meynard Keynes

• Adam Smith

• Milton Friedman

Which economic philosopher supported the idea of government spending when the economy is in recession?

• Adam Smith

• John Maynard Keynes

• Milton Friedman

• Friedrich Hayek

In which economic system does the government own the means of production?

• libertaarian economy

• Free-enterprise economy

• Command economy

• Traditional economy

In a traditional economy, what determines decisions about how resources are used?

• government leaders

• habit, custom, superstition, or religious tradition.

• buyers and sellers

• the invisible hand

What are the characteristics of the free-enterprise system?

• government central planners make the important decisions about what, how, and for whom to produce.

• decisions about resources are made by habit, custom, superstition, or religious tradition.

• decisions are determined through barter and trade.

• private ownership, businesses operated for profit and economic freedom for both consumers and producers

Who is Karl Marx?

• philospher who supported public ownership of all production of goods.

• the father of modern capitalism

• The father of monetarism

• philopsher who supported government spending during economic decline.

What does the invisible hand refer to?

• the government agency that sets the price/quantity needed.

• The market force interactions between buyers and sellers that determine price/quantity

• the force that provides the factors of production

• the tribal leader that promotes barter and trade.

What is the problem with free-enterprise capitalism?

• winners and losers

• income inequality

• wealth is unevenly distributed.

• All of the above