Economic Systems Quiz

How could the Chinese economy be characterized today?

• Free market

• Centrally planned

• Mixed but on the side of centrally planned

• Mixed but on the side of free market

What is an important advantage of a free market? It does not change unless the government directs it It offers a wide variety of goods and services It is easy to regulate It protects the less fortunate

• It does not change unless the government directs it

• It offers a wide variety of goods and services

• It is easy to regulate

• It protects the less fortunate

Which of the following is not a key economic question? What goods and services should be produced? How should these goods and services be produced? Who consumes these goods and services? How should it be ensured that goods and services are paid for?

• What goods and services should be produced?

• How should these goods and services be produced?

• Who consumes these goods and services?

• How should it be ensured that goods and services are paid for?

Which of the following was a free market philosopher? Karl Marx Adam Smith Vladimir Lenin Friedrich Engles

• Karl Marx

• Adam Smith

• Vladimir Lenin

• Friedrich Engles

Who was the leader that introduced communism and central planning to the former Soviet Union? Adolf Hitler Vladamir Lenin Benito Mussolini Friedrich Engles

• Adolf Hitler

• Vladamir Lenin

• Benito Mussolini

• Friedrich Engles

What is the product market? The market in which payments are received for selling products to consumers The market in which income is received for supplying land, labor, or capital The market in which firms purchase the factors of production from households The market in which households purchase the goods and services that firms produce

• The market in which payments are received for selling products to consumers

• The market in which income is received for supplying land, labor, or capital

• The market in which firms purchase the factors of production from households

• The market in which households purchase the goods and services that firms produce

Which of the following is characteristic of a traditional economy? Communities tend to be fast-growing They are usually based on light industrial production They have a high standard of living Children tend to have the same jobs as their parents

• Communities tend to be fast-growing

• They are usually based on light industrial production

• They have a high standard of living

• Children tend to have the same jobs as their parents

An efficient economy is one that? Has very few people who do not work for a living Makes the best use of all its goods and services Uses its resources to make the most goods and services Makes the least costly use of its resources

• Has very few people who do not work for a living

• Makes the best use of all its goods and services

• Uses its resources to make the most goods and services

• Makes the least costly use of its resources

What incentive motivates a manufacturer to sell a product? Making profits on sales Putting others out of business Pleasing the consumer Popularity of the product

• Making profits on sales

• Putting others out of business

• Pleasing the consumer

• Popularity of the product

What is the purpose of the competition? To act as a regulating force in the marketplace To cause producers to attempt to put each other out of business To cause buyers to have to be careful about spending their money To act as a motivating force behind the free market

• To act as a regulating force in the marketplace

• To cause producers to attempt to put each other out of business

• To cause buyers to have to be careful about spending their money

• To act as a motivating force behind the free market