Econ. Systems & Development Quiz

What are the three basic economic questions every society must answer?

• What to produce? How to produce? For whom to produce?

• Why to produce? Where to produce? Who produces?

• When to produce? How much to produce? Where to produce?

• Who to produce for? What to produce? Why to produce?

What economic system is based on private ownership and the goal of making a profit?

• Socialism

• Communism

• Capitalism

• Traditional Economy

In which economic system does the government own all the means of production and there is no private property?

• Capitalism

• Socialism

• Communism

• Market Economy

Which economic system aims to distribute wealth more equally among citizens?

• Capitalism

• Communism

• Socialism

• Traditional Economy

What is the main difference between developed and developing nations?

• Population size

• Level of industrialization

• Climate

• Land area

Which type of economy is based on customs, traditions, and beliefs of the community?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

In which type of economy does the government make all the decisions regarding what, how, and for whom to produce?

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

Which type of economy is driven by the choices of consumers and producers?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

What is a mixed economy?

• An economy where all decisions are made by the government

• An economy that relies solely on traditional customs to make economic decisions

• An economy that combines elements of capitalism and socialism

• An economy where decisions are made based on consumer demand only

What is the definition of economics?

• The study of how society chooses to use resources

• The process of making money and investing it

• The study of government policies on taxation and spending

• The analysis of market trends and stock prices