Understanding Economic Systems Ch 2

What determines which economic system a society employs?

• The society's goals and values.

• The society's population size.

• The society's geographical location.

• The society's technological advancement.

Which of the following is one of the three basic economic questions?

• What is the capital of France?

• How should goods and services be produced?

• What is the speed of light?

• Who invented the telephone?

Who consumes these goods & services?

• Supply

• Demand

• Production

• Innovation

Which of the following combinations will produce 15 bushels of wheat?

• 1 acre of land + 56 worker hrs. + hand tools

• 1 acre of land + 2.9 worker hrs. + tractor

• 1 acre of land + 30 worker hrs. + hand tools

• 1 acre of land + 10 worker hrs. + tractor.

Which of the following is an example of a societal decision regarding distribution?

• A) Government healthcare for all

• B) Building more roads

• C) Increasing taxes

• D) Reducing pollution

Which of the following is an economic goal focused on ensuring that resources are used wisely and efficiently?

• Economic Freedom

• Economic Efficiency

• Economic Equity

• Economic Growth

Which economic goal is related to the protection of the environment?

• Economic Growth

• Economic Freedom

• Other goals

• Economic Efficiency

Which of the following is not one of the four economic systems? A) Traditional economy B) Market economy C) Command economy D) Industrial economy.

• Traditional economy

• Market economy

• Command economy

• Industrial economy

Which economic system is most likely to have a mix of private and public ownership?

• Traditional economy

• Market economy

• Command economy

• Mixed economy

Which economic system is most likely to encourage entrepreneurship?

• Traditional economy

• Market economy

• Command economy

• Mixed economy