Economic Systems Quiz

How does scarcity influence government decisions?

• It has no influence

• It leads to random decision-making

• It requires a system to determine resource use

• It eliminates the need for economic systems

Which economic system is most associated with socialism?

Which economic system is most likely to have government intervention in the economy?

• Market Economy

• Command Economy

• Traditional Economy

• Mixed Economy

What is a common practice in societies where everyone does what their parents did?

• Using advanced technology

• Barter and trade

• Investing in stocks

• Digital currency

What is a disadvantage of traditional economies as mentioned in the text?

• Predictable life

• Everyone's role is set

• New ideas are discouraged

• Stable life

Which communities are mentioned as examples of those operating under traditional economies?

(a)  

• Urban communities in Europe

• Indigenous communities such as Inuit in Canada
• Suburban areas in North America

• Metropolitan areas in South America

In a command economy, who decides the distribution of goods and services?

In a command economy, who owns monopoly businesses?

• Private individuals

• Foreign investors

• The government

• Non-profit organizations

What is the purpose of the laws and regulations created by the government in a command economy?

• To enforce the central plan

• To increase foreign trade

• To promote private investment

• To reduce taxes

How much government interference is there in a market economy?

• Extensive

• Moderate

• Minimal

• None