Economic Systems and Nations Quiz

According to the text, what are the three things that a society needs to figure out to have an economic system?

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

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

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

• Where to produce, when to produce it, and who gets it

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

• International organizations

• Government

• Businesses

• Individuals

What is the main goal of socialism?

• To abolish private property

• To provide free and easy access to education and healthcare

• To distribute output (goods/services) more equally

• To meet specific collective objectives

In a free market economy, who owns the factors of production?

• Owners of the resources

• Government

• Businesses

• International organizations

What concept do economists refer to as the idea that individuals and businesses meet society's needs when they seek their own self-interest?

• Guiding hand

• Invisible hand

• Helping hand

• Visible hand

What is the role of the government in a free market economy according to the text?

• To control all aspects of production

• To maintain the rule of law and allow for a semi- "laissez faire" system

• To distribute output equally

• To abolish private property

What is the term used for an economy that is completely controlled by the government, down to the number of products to be produced?

• Planned economy

• Mixed economy

• Free market economy

• Command economy

Which country is mentioned as an example of a command economy?

• North Korea

• New Zealand

• Canada

• Denmark

What is the term used for economies that have both free market and government intervention?

• Command economies

• Planned economies

• Mixed economies

• Socialist economies

What is the circular flow model used to explain in the text?

• The interactions between businesses, individuals, and the government

• The interactions between businesses and international trade

• The interactions between businesses and the financial sector

• The interactions between individuals and international trade