SS.7.CG.3.15 Economic Systems Quiz

Who owns the factors of production in a command economy?

• Individual buyers

• Private individuals

• The state

• Individual sellers

What is the role of planners in a market economy?

• Planners in the state direct the economy

• There is no central planner directing economic activity

• Planners in the state determine how goods and services are distributed

• Planners in the state determine how to produce

Which economic system is based on collective well-being and strengthening the state?

• Market economy

• Command economy

• Capitalism

• Socialism

What provides the incentive to create and work in a market economy?

• The state's power

• Collective well-being

• The potential for profit

• Obligatory work on behalf of the state

Which of the following best describes capitalism?

• An economic system where the state owns most of the factors of production

• An economic system with no potential for profit

• A free enterprise system that allows private individuals to own and control most of the factors of production

• An economic system where individual freedom in decision-making is strongly limited

What does a "Free market" economy imply?

• An economy with high government regulation and control over production

• An economy free of government regulation, with low taxation, and private ownership of the means of production

• An economy where the government owns all means of production and supply

• An economy with a focus on equal distribution of resources among citizens

Who is credited with first describing the economic system of capitalism in 'The Wealth of Nations'?

• Karl Marx

• Friedrich Engels

• Adam Smith

• Vladimir Lenin

What is a key characteristic of communism?

• A single party dictatorship abolishes private property and controls the means of production and distribution of goods and services

• Private property is encouraged to foster competition and economic growth

• The government plays a minimal role in the economy, promoting individual freedom

• The government provides social services but allows for private ownership of production

What is a common outcome historically associated with attempts at achieving a communist economic system?

• Successful establishment of a class-free society

• High levels of innovation and economic growth

• Failure to achieve the ideal communist society and association with autocratic or totalitarian regimes

• High levels of personal property ownership and individual wealth

Which of the following is NOT a characteristic of socialism?

• The state and economy are organized in a way that the government owns and controls major industries

• People are compensated based on need but also contribute to the society

• There is a high level of government involvement in the economy

• All means of production are owned by individuals and there is minimal government intervention