Economics Quiz

What is Economics primarily concerned with?

• Study of historical financial systems

• Study of political systems and government policies

• Study of the production, distribution, and consumption of goods and services

• Study of human behavior in isolation

Economics also involves the study of:

• The choices people make to satisfy their wants and needs with an unlimited supply of resources

• The interaction between different animal species in an ecosystem

• The choices people make to satisfy their wants and needs with a limited supply of resources

• The development of computer algorithms for efficient resource management

What is another name for a Free Market economy?

• Socialist Economy

• Command Economy

• Capitalist Economy

• Mixed Economy

Which of the following statements is true about the Free Market economy?

• It is always just and equitable.

• It is controlled by public owners or the state.

• It is highly efficient but not always just or equitable.

• It does not allow voluntary trades in markets.

What is considered a pro of a Free Market Economy?

• Poor working conditions

• Monopolies

• More freedom for individuals

• Little to no government interference

What is another name for a Centrally Planned Economy?

• Market Economy

• Mixed Economy

• Command Economy

• Traditional Economy

Who is in charge of deciding what is made and consumed in a Command Economy?

• Private companies

• Consumers

• Government

• Foreign investors

What is a negative aspect of a centrally planned economy in terms of market dynamics?

• Lack of inequality

• No competition

• Little to no unemployment

• Efficient / Speedy

What is a mixed economy a mixture of?

• Private and public ownership

• Social security and state interventions

• Free market and government involvement

• Regulation and social security

Which of the following is considered a pro of a mixed economy?

• High taxes

• Bad regulation

• Encourages special interest groups

• Improvement of social welfare