Economic Systems Quiz

What is a Traditional Economy?

• An economic system that relies mainly on markets to determine what goods and services to produce

• An economic system in which decisions about what goods and services to produce and how are made on the basis of tradition

• An economic system that relies solely on the central government to determine what goods and services to produce and how

• An economic system that seeks to provide for its less fortunate members

Which of the following is a pro of a Market Economy?

• Tradition and community values keep society running smoothly

• Can ensure full employment

• Efficient meeting people’s needs based on demand

• Workers have little incentive to work harder

What is a disadvantage of a Command Economy?

• Business investments help the economy grow

• Government planners are less efficient than the market at making economic decisions

• Competition keeps prices from rising too high

• Distributes income more equally

What does Economic Freedom refer to?

• The fair and just distribution of a society’s wealth

• The ability to make our own economic decisions without interference from the government

• When an economy produces more and better goods and services

• The goods and services we count on are there when we want them

Which goal of economic systems is focused on using most of society's resources?

• Economic Security

• Economic Equity

• Economic Efficiency

• Economic Growth

What is the aim of Economic Equity?

• To keep the society running smoothly based on tradition

• To ensure full employment and stable prices

• To provide for its less fortunate members

• The fair and just distribution of a society’s wealth