Economic Systems

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

• Who to produce for, how much to produce, when to produce it

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

• Where to produce, when to produce it, why to produce it

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

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

• Government

• Businesses

• Individuals

• International organizations

What is the main goal of true Communism according to Karl Marx?

• Creating income inequality

• Exploiting the labor force

• Maximizing profits for businesses

• Abolition of private property

Which country is mentioned in the text as an example of a socialist market economy?

• United States

• China

• Denmark

• North Korea

What is the concept referred to as the 'invisible hand' in a free market economy?

• International trade regulations

• Government intervention in the market

• Consumer preferences driving production

• Labor unions controlling production

What is the role of the government in maintaining the rule of law in a free market economy?

• To control all aspects of production

• To regulate international trade

• To provide free goods and services

• To enforce laws and contracts

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

• The impact of international trade on the domestic market

• The distribution of public goods and services in the economy

• The interaction between individuals and businesses in the market

• The flow of resources and money between businesses and the government

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

• New Zealand

• Canada

• North Korea

• China

What is the main takeaway from the discussion about the optimal amount of government involvement in the economy?

• The government should have complete control over production

• The government should not be involved in the economy at all

• Economists are good at answering questions about feelings

• There are no solutions, only trade-offs

What is the quote by Deng Xiaoping mentioned in the text regarding the debate over economic systems?

• Economists aren't really good at answering these types of questions

• It doesn't matter whether a cat is black or white, if it catches mice, it's a good cat

• The government should control all aspects of production

• There are no solutions, only trade-offs