Economic Systems Quiz

What is an example of a trade-off in economic decision-making?

• A city decides to build a new amusement park, increasing investment in education.

• A city chooses to hire more police officers, which does not affect any other budget areas.

• A government decides to build new roads, resulting in no investment in parks.

• A government increases taxes without changing public spending.

What does the decision to hire more police officers imply in terms of economic trade-offs?

• It implies that there will be more money to hire teachers.

• It implies that there will be less money to hire teachers.

• It implies that the city will also hire more firefighters.

• It implies that the city will reduce taxes.

What determines how goods and services will be distributed in an economic system?

• The country's political leader

• The type of economic system under which people live

• The size of the country

• The country's main export

How are goods and services typically distributed in the US?

• Through a barter system

• Through a lottery system

• Through a price system

• On a first come, first serve basis

Which of the following is NOT mentioned as a method of distribution of goods and services?

• Price system

• Lottery

• First come, first serve

• Government allocation

According to the economic question of "HOW it should be produced?", which of the following is NOT a consideration?

• What type of laborers

• How many workers

• Skilled or unskilled

• The price of the product

What are economic systems used for?

• To determine how to use resources to satisfy people's needs and wants

• To allocate resources only to the wealthiest individuals

• To create laws and regulations for a country

• To establish educational systems

What is a traditional economy?

• An economic system based on digital technology

• An economic system where the government decides everything

• An economic system in which the allocation of scarce resources, and other economic activity, is the result of ritual, habit, or custom

• An economic system based solely on the stock market

What are economies based on tradition guided by?

• Technological advancements

• Customs and beliefs

• Market demand

• International trade agreements

In traditional economies, how are the roles in the workforce typically determined?

• By individual choice and education

• By government assignments

• By family lineage and tradition

• By competitive exams