Economics Quiz

What is a strength of a traditional economic system?

• Discourages new ideas

• Life is stable and predictable

• Lack incentives

• High degree of consumption

Which of the following is a weakness of a command economic system?

• Sets economic roles for all

• Adjusts to change

• Does not meet the needs/wants of the consumers

• Laissez-Faire

What is a characteristic of a market economic system?

• Lower living standards

• Capable of great change in a short amount of time

• Produces great variety of goods

• Discourages new ideas

Which economic system might leave some people, like old people, out?

• Traditional

• Command

• Market

• Mixed

What is the main characteristic of a traditional economic system?

• A) Central authority makes decisions

• B) Decisions are based on ritual, habit, or custom

• C) Decisions are made in the best interest of firms

• D) Decisions are made by a democratic vote

What is a key feature of a command economy?

• A) Decisions are made by individual choice

• B) Decisions are based on tradition

• C) A central authority makes most decisions

• D) Decisions are made by market forces

In which economic system do people and firms act in their own best interests?

• A) Command

• B) Traditional

• C) Market

• D) Mixed

Which economic system is most likely to be found in a society with strong cultural traditions?

• A) Market

• B) Command

• C) Traditional

• D) Mixed

What does "Economic Efficiency" emphasize in the U.S. economy?

• Unlimited use of resources

• Factors of production must be used wisely

• Increasing government spending

• Reducing taxes for the wealthy

What is meant by "Economic Equity" in the U.S. economy?

• Equal pay for equal work

• Higher pay for executives

• Lower taxes for businesses

• Increased government subsidies