Economic Systems Quiz

What are the three questions each country must answer to provide a system for the use of the country's resources?

• How to promote economic growth, correct failures, and increase the standard of living

• How to establish public goods, government regulations, and welfare systems

• How to distribute resources, provide services, and manage infrastructure

• The text does not specify the actual questions

What is considered a public good in the context of a country's economic system?

• A good or service provided by the government

• A service provided by private companies

• A resource that is available to the public for free

• A product that is exported to other countries

What will government regulations help to do in a country's economic system?

• Decrease the country's wealth

• Correct failures in the economy and promote economic growth

• Privatize all public services

• Reduce the role of the government

What does the health and welfare of a country's people depend on?

• The types and amounts of goods and services produced in that country

• The relative wealth of other countries

• The investments in infrastructure alone

• The educational background of the government officials

How do governments attempt to increase the standard of living?

• By investing in infrastructure, education, and other areas

• By reducing public goods and services

• By limiting regulations and economic interventions

• By focusing solely on the country's exports

How do countries organize their scarce resources to take care of their citizens?

• Through cultural traditions

• By maximizing imports

• Through economic systems

• By promoting tourism

How much involvement should a government have in an economy?

• No involvement at all

• Complete control of the economy

• Limited to foreign policy

• The level of involvement can vary

What do people mean when they talk about "a standard of living"?

• The average income of a country

• The level of wealth, comfort, material goods, and necessities available

• The number of people living in urban areas

• The educational standards in a society

What are the three basic questions that all nations must answer in establishing their economic systems?

• What is the capital? How is the budget allocated? Who are the stakeholders?

• What goods and services will be produced? How will we produce those goods and services? Who gets the goods and services that are produced?

• What are the tax rates? How will the market be regulated? Who will govern the trade?

• What are the resources? How will resources be conserved? Who will be employed?

How does a nation decide how to answer the three basic economic questions?

• Based on the nation's military strength

• Depending on the nation's historical background

• Depending on which broad social goals it wants to achieve

• Based on the advice of international economic organizations