Topic 2: Economic Systems and Free Enterprise

Which of the following is NOT one of the three key questions that economic systems aim to answer?

• What goods and services should be produced?

• How should goods and services be produced?

• Who should consume these goods and services?

• When should goods and services be produced?

What is considered a non-economic goal?

• Equity

• Environmental Protection

• Security and predictability

• Efficiency

Which of the following is NOT one of the four economic systems?

• Traditional

• Market

• Command

• Capital

In a traditional economy, what goods and services should be produced?

• New and innovative goods

• The same ones that were produced in the past

• Goods and services that are imported

• Whatever the government decides

Which of the following economic goals are most satisfied by a traditional economy?

• Efficiency

• Security and predictability

• Equity

• Freedom

According to the market, what should determine the goods and services that are produced?

• Government regulations

• Whatever people are willing to purchase

• The availability of raw materials

• The preferences of the producers

How should goods and services be produced in a market system?

• As quickly as possible

• With the highest quality

• The most efficient manner possible

• By using traditional methods

Which of the following economic goals are NOT met by a market economy?

• Equity

• Freedom

• Predictablilty

• Growth and innovation

What term is used to describe the phenomenon where individuals' self-interest benefits the economy, even though it is not their intention?

• Market Demand

• The Invisible Hand

• Economic Policy

• Fiscal Responsibility

Who are considered the main actors in a market economy?

• Governments and Organizations

• Households and Firms

• Consumers and Producers

• Importers and Exporters