ACADEC ECON Quiz #3

What type of economy is an economic system in which private businesses can operate freely with minimal state control?

• command economy

• communism

• market economy

• traditional economy

John owns an apple orchard and makes a living by selling apples. He protects his land with utmost care and takes all the necessary security measures.What motivates John to protect his land?

• family obligations

• government orders

• property rights

• societal pressure

Henry lives in a country where the government gives many incentives to produce military goods and few incentives to produce consumer goods. Henry knows a more efficient way to finish his task at work and feels like sharing it with his boss. However, he has no incentive to share it. Which type of economy does Henry most likely live in?

• command economy

• market economy

• mixed economy

• traditional economy

Which is NOT one of the 3 economic questions?

• How should goods and services be produced?
• When should goods and services be produced?
• What goods and services should be produced?
• Who consumes these goods and services?

Today, most economies are:

• Market
• Traditional
• Mixed
• Command

Adam Smith's call for the restricting of government in the economy is called...

• The invisible hand
• Laissez Faire
• Consumer sovereignty 
• Competition

What is the invisible hand?

• The self-regulating nature of the market place
• Self-interest motivating the market place
• Competition being the regulating force in the market place
• The equal distribution of wealth

Which is NOT an economic goal of the free market?

• Economic efficiency
• Economic freedom
• Economic growth and innovation
• Economic equity

What type of economy exists only under an authoritarian?

• Traditional
• Capitalist
• Communist
• Socialist

Which is NOT a problem of centrally planned economies?

• Guaranteed pay
• Shortages
• Poor quality goods
• Lack of flexibility