Economy Quiz

Imagine that you are an immigrant to the United States from a communist country, and you have recently started your own business. In which type of economy is it more likely that you own your own business?

• Free Enterprise Economy

• Command Economy

• Mixed Economy

• Traditional Economy

In which type of economy does the government control businesses?

• Free Enterprise Economy

• Command Economy

• Mixed Economy

• Traditional Economy

In which type of economy does the government set the pricing of items?

• Free Enterprise Economy

• Command Economy

• Mixed Economy

• Traditional Economy

Why would entrepreneurs like Kenneth leave communist North Korea?

• To seek better economic opportunities

• To enjoy colder climates

• To study marine biology

• To join a sports team

Which statement provides the BEST evidence for the answer to Part A?

• Entrepreneurs have more opportunities in North Korea than in the United States.

• Entrepreneurs in the United States are able to thrive in any situation.

• Entrepreneurs in the United States have opportunities to open businesses.

• Entrepreneurs in the United States are able to thrive in any situation.

Which statement correctly describes the business ownership rights in North Korea?

• Individuals have limited rights to own private businesses.

• Individuals are encouraged to start private businesses.

• Individuals are not allowed to own or operate private businesses.

• All individuals must own a business.

What is the basis for determining market prices and production in a market economy?

• Government regulations

• Supply and demand

• Random selection

• Corporate decisions

Which factor contributes to the survival of businesses in a competitive market?

• High prices and limited quality

• Government support

• Offering the best quality goods and services at the lowest prices

• Monopoly over the market

Which of the following are benefits of the United States free enterprise system? Select TWO correct answers.

• government control

• limited options for goods and services

• dependence on government

• economic freedom

• competition

How has China's economy changed in recent years?

• from command/communist to mixed

• from mixed to free enterprise

• from socialist to command

• from free enterprise to command