Economic Systems Quiz

Which of the following would NOT be an example of bartering?

• Trading fruits for vegetables

• Using gold coins

• Exchanging clothes for shoes

• Swapping services

What type of economic system is based on the principles of supply and demand?

• Command economy

• Mixed economy

• Traditional economy

• Market economy

Which is NOT a function of money?

• Store of value

• Unit of account

• Tool for bartering

• Medium of exchange

In a barter system, a double coincidence of wants means:

• Both parties have money

• Both parties need the exact goods the other offers

• Goods are exchanged for currency

• Only one party benefits

What is fiat money?

• Money backed by a physical commodity

• Money declared legal by the government

• Money used for bartering

• Gold-backed currency

What is the main characteristic of a barter system?

• Use of currency

• Direct exchange of goods

• Loans with interest

• Use of checks

Which of the following describes a mixed economy?

• Government controls all resources

• Market operates freely

• Combination of private and public sectors

• Businesses owned by workers

The primary function of money is to:

• Enable trading of goods

• Serve as a medium of exchange

• Increase the economy’s speed

• Solve bartering issues

Which type of business is owned and operated by one person?

• Corporation

• Partnership

• Sole proprietorship

• Limited liability company

Which economic system gives individuals the most freedom to make economic decisions?

• Traditional

• Market

• Command

• Mixed