Grade 10 Unit 2 Quiz on Economic System in Today's World

_____________ is carried out by three basic economic units: the firm, the household, and the government.

Firms make production _______________

How does the government make use of collected taxes from household and firms?

• Distribute good bought from firms

• Keep the goods bought from firms for future use

• Allocate the goods bought from firms to poor people only

• Budget the taxes collected and keep in the bank

What does the households provide firms?

• Provide money for capital

• Provide goods for redistribution

• Provide firms with factor services in production

• Provide firms necessary programs for factors of production

Which of the following is also known as capitalist economy?

• Command economy

• Market economy

• Mixed economy

• Traditional economy

What is the BEST advantage of traditional economy?

• It gives food to household

• It met the goals identified by economists

• It has greater equality

• It attains sustainability for the future

Mixed economies minimize the __________ of a pure market.

Which of the following is also known as planned economy?

• Command economy

• Market economy

• Mixed economy

• Traditional economy

Which of the following is the role of the government in case

there is an economic crisis in mixed economy?

• The government stop financial transactions

• The government make policies and laws to address crisis

• The government steps in to control prices

• The government instruct central bank to decrease interest rates

Which of the following is the main characteristics

of market economies?

• No competition

• Governed by age old traditions

• Economic planning is encouraged

• Freedom of choice, competition and profit