Economic Systems Quiz

Look at the economic continuum. Then answer the question that follows. Which country in the diagram has the MOST free economy?

• Canada

• Cuba

• Mexico

• the United States

Look at the economic continuum. Then answer the question that follows. In what country on the diagram would it be HARDEST for a person to start his or her own business?

• Canada

• Cuba

• Mexico

• the United States

Read the list. Then answer the question that follows. Out of the four listed countries, which one is closest to a pure command economy?

• Brazil

• Canada

• Cuba

• Mexico

Why is the Canadian economy considered a mixed economy?

• because Canada's finances depend on loans from a number of major banks

• because Canada's markets are subject to significant government regulations

• because most of Canada's income comes from investing in private businesses

• because most of Canada's industries are owned and operated by the government

Which of the following is NOT a key difference between market and command economies?

• private property ownership

• government control of business

• freedom of enterprise and choice

• the presence of a banking system

In Canada, which group has the MOST influence over which goods and services are produced?

• Canadian consumers

• the Parliament of Canada

• the prime minister's cabinet

• Canadian business leaders

What is one reason for people to exchange currency?

• Most people want to use American dollars to trade.

• Because countries have different currencies that are valued differently.

• Most people want to use the Brazilian real to trade.

• They don't because people can use any currency at any business in the world.

Which term is used to refer to a country focusing on producing a relatively small number of goods or services based on what the country can produce most efficiently?

• opportunity cost

• competition

• specialization

• entrepreneurship

Which of the following is true of free trade between Canada and the United States?

• It discourages the countries from producing goods their citizens need, like food.

• It is only beneficial to the wealthiest of the two countries, the United States.

• It allows each country to specialize in the production of certain goods.

• It benefits all workers and consumers in each of the two countries.

Why would the Canadian government MOST LIKELY impose a tariff on certain imported goods?

• to increase the choices available to Canadian consumers

• to reduce prices of necessary goods for Canadian consumers

• to improve the quality of goods available in Canadian markets

• to help domestic businesses better compete in Canadian markets