Economic System Quiz

What are the two extreme ideas of how a country's economy can work?

• Fascism and totalitarianism

• Feudalism and mercantilism

• Communism and a free market

• Capitalism and socialism

What is the role of the UK government in the economy?

• To interfere in a free-market economy

• To provide essential services and set economic policies

• To control all financial transactions

• To make all production and distribution decisions

Ishaan, Amelia, and Daniel are all part of a local economy. What role do they play in this economy?

• They set the economic policies for the local area

• They provide essential services to the local community

• They decide what goods and services are produced and who receives them

• They make all financial decisions for the local economy

What is the cycle of money in the economy?

• A one-way flow of money from individuals to businesses

• A circular flow of money between individuals, banks, and businesses

• A linear flow of money from businesses to individuals

• A random flow of money between individuals and the government

What are the knock-on effects of changes in the economy known as?

• Financial downturns

• Monetary cycles

• Market fluctuations

• Economic spirals

What is the government's aim for full employment?

• To have everyone who is able and willing to work in paid employment doing so

• To have everyone working in areas that are not a part of the formal employment structure

• To have 100% paid employment

• To have everyone working in formal employment

What is the government's policy for 'price stability'?

• To keep inflation high

• To keep inflation low

• To increase prices

• To reduce prices

How many sectors are there in the economy?

• Five

• Four

• Three

• Two

What is the largest employer among the three sectors?

• Public sector

• Private sector

• Charity sector

• None of the above

What is the aim of corporate social responsibility (CSR) for businesses?

• To increase profits

• To reduce employment

• To increase pollution

• To decrease community engagement