Economic Systems Quiz

What is an economic system?

• A system of taxation

• The way a society uses its scarce resources

• A method of government control

• A way to distribute wealth equally

Which of the following is NOT a type of economic system?

• Traditional

• Command

• Market

• Capitalist

What is a characteristic of a traditional economy?

• Market competition

• Government control

• Resistance to change

• High productivity

In a command economy, who answers the economic questions?

• The businesses

• The consumers

• The government

• The market

Which country is cited as a modern example of a command economy?

• United States

• North Korea

• China

• India

What is a disadvantage of command economies?

• High productivity

• Low wages for workers

• High competition

• Consumer sovereignty

What defines a mixed economy?

• A combination of economic systems

• Only market influences

• Complete government control

• Only traditional methods

What is a key feature of a market economy?

• Central planning

• Government ownership

• Self-interest

• Tradition-based production

What does the circular flow model represent?

• The distribution of wealth

• The production of goods

• Interactions in a market economy

• The flow of government resources

What is one advantage of market economies?

• Unequal wealth distribution

• Limited consumer choice

• Economic freedom

• Low competition