Economic Systems Test

A/an ______ system is the way communities and governments organize resources, goods, and services.

• Government

• Ecological

• Economic

• Geologic

When the government controls economic activity, it is called a ______ system.

A/an ______ is something that is offered to people to help them make a decision about goods and services.

• Economic system

• Market system

• Economic incentive

• Market incentive

What is an example of a positive economic incentive?

• taxes

• fees

• Buy one, get one free

Two partners independently own a business that repairs bicycles. They are an example of what kind of economy?

• Traditional

• Command

• Market

Fill in the Blank: The transportation of people in a country depends on bicycles. Two partners are told by the government to repair bicycles for a fixed price. This is an example of a ________.

In a free market, businesses must compete with one another for _______.

• Producers

• Consumers

• Buyers

• Sellers

Multiple producers wanting consumers to purchase their product creates _______ in the marketplace.

• Competition

• A monopoly

• Price Fixing

• Specialization

Someone who creates and funds a business on their own is called _______.

• A corporation

• An employee

• A worker

• An entrepreneur

What are the 3 economic systems we discussed?

• Communist, Fascist, Traditional

• Traditional, Command, Market

• Command, Traditional, Fascist

• Market, Communist, Command