Exploring Economic Systems: Free-Market, Centrally-Planned, and Mixed

The video discusses different economic systems: free market, centrally planned, and mixed economies. It explains how each system allocates resources and answers key economic questions. The free market relies on competition and consumer choice, the centrally planned economy is controlled by the government, and the mixed economy combines elements of both. The video also highlights the potential failures of pure systems and the benefits of a mixed approach.

What is the primary purpose of an economic system?

• To create wealth

• To allocate scarce resources

• To reduce taxes

• To increase population

Which of the following is NOT a way to allocate seats in the economics class mentioned in the introduction?

• Based on height

• Highest GPA

• First come, first served

• Random lottery

Who is the main advocate of the free market economy?

• Milton Friedman

• John Maynard Keynes

• Karl Marx

• Adam Smith

What is the 'invisible hand' in a free market economy?

• Government regulations

• Natural market forces

• Corporate monopolies

• Consumer unions

In a free market economy, who decides what goods and services are produced?

• Large corporations

• Consumers

• International bodies

• The government

Which economist is associated with the centrally planned economy?

• Adam Smith

• David Ricardo

• John Maynard Keynes

• Karl Marx

In a centrally planned economy, who controls the resources and production?

• Consumers

• Private firms

• International organizations

• The government

What is a common issue in both free market and centrally planned economies?

• Market failures

• Lack of consumer choice

• High levels of competition

• Excessive government control

Which economic system combines elements of both free market and centrally planned economies?

• Centrally planned economy

• Traditional economy

• Mixed economy

• Free market economy

Which economic system is most common around the world today?

• Free market economy

• Centrally planned economy

• Mixed economy

• Traditional economy