Mixed Economy Quiz

What is a mixed economy?

• A completely free market

• A completely controlled economy

• A system combining government control and free-market values

• A barter-based system

In a mixed economy, what typically exists alongside privately owned businesses?

• International companies

• State-run industries

• Non-profit organizations

• Private investors

Tags

CCSS.RI.1.5

CCSS.RI.2.5

CCSS.RI.3.5

CCSS.RI.4.5

CCSS.RI.K.5

Which of the following is often part of the state sector in a mixed economy?

• Restaurants

• Public transportation

• Small retail stores

• Entertainment

What is the process of freeing up the economy for private businesses to compete called?

• Privatization

• Deregulation

• Nationalization

• Monopoly

What is one reason some people oppose deregulation in services like healthcare and education?

• It makes them too expensive

• They believe profit motivation will harm these services

• It increases taxes

• It reduces competition

What do governments sometimes do to ensure companies trade honestly?

• Ban all trade

• Deregulate industries

• Create laws to regulate businesses

• Create monopolies

What is one danger of a company having a monopoly?

• Increased competition

• Consumers benefit from lower prices

• Normal market forces don’t affect it

• The company is forced to close

Why might the government regulate methods of production?

• To control prices

• To guarantee products are safe for consumers

• To encourage monopolies

• To increase taxes

What do economists argue is a benefit of a mixed economy for consumers?

• They can control the economy by choosing products or voting for political parties

• They can own large industries

• They have fewer choices in the market

• They pay higher taxes

What are primary industries in a mixed economy?

• Industries related to technology

• Industries providing basic materials to manufacturers

• Industries focused on education

• Small retail businesses