AmG Topic 12, Lesson 1 - Economic Systems

The government owns and operates major industries, but allows private individuals to set up small businesses and own their own small farms. What economic system is this known as?

• Capitalism
• Socialism
• Laissez-Faire
• Communism

A free enterprise system is MOST LIKELY to exist in a nation with

• a command economy.
• a communist state.
• a democratic republic.
• an absolute monarchy.

Which of the following statements might be made by a citizen of a country with a command economy?

• The government is taking too much of a laissez-faire attitude toward our country's economy.
• Our workers have little to no incentive to create new products.
• The government is spending too much money on social services and nationalizing industries.
• Our workers do not have a voice in the management of our companies or our production processes.

Capitalism allows WHO to make all economic decisions?

• private individuals
• combination of the government & private individuals
• the government
• the workers

Who would make decisions about what to produce and how much to produce in a true/pure communist society...like Karl Marx would like it to look like?

• everyone would share in making those decisions
• a combination of the government & private individuals would make those decisions
• only the government would make those decisions
• only elected officials would make those decisions

The following are examples of what kind of economic system? Government provides healthcare, education, and childcare; elections are monitored & controlled; all land, housing and businesses are owned by the government

• Capitalism
• Socialism
• Communism
• Laissez-Faire

In a mixed economy, who typically makes the economic decisions?

• Only private individuals

• Only the government

• Both the government and private individuals

• International organizations

Which economic system is characterized by minimal government intervention and maximum freedom for private businesses?

• Socialism

• Communism

• Laissez-Faire

• Mixed Economy

In which type of economy are resources primarily owned and controlled by the government?

• Market Economy

• Command Economy

• Traditional Economy

• Mixed Economy

In which economic system does the government play a significant role in issuing regulations and controlling the economy, but private ownership and competition is still allowed?

• Market Economy

• Mixed Economy

• Traditional Economy

• Laissez-Faire