BE 2.03-2.05 Test

__________________: an economic system in which all or many of the means of production and distribution are owned and controlled by the government.

• A. market economy

• B. command economy

• C. socialism

________________: a command economic system in which the government controls the economic system and does not allow private ownership of the means of production and distribution.

• A. communism

• B. market economy

• C. socialism

________________: the organized way in which a country handles its economic decisions and solves its economic problems.

• A. economic system

• B. market economy

• C. traditional economy

__________________: an economic system in which the questions of what, how, and for whom goods will be produced are answered by individuals and businesses in the marketplace.

• A. market economy

• B. traditional economy

• C. command economy

Under which type of economy does the government own the basic means of production, but with some private ownership of businesses?

• A. command

• B. communism

• C. entrepreneurship

• D. socialism

What economy is based on public or governmental ownership of the production and distribution of goods?

• capitalist

• mixed

• socialist

• traditional

In a socialist economy, what determines how basic economic questions are answered?

• government

• products

• resources

• retailers

The economic system that adopts the fewest new ideas or improvements is:

• communist.

• market.

• socialist.

• traditional.

__________________: an individual who: invents, develops, and distributes a good or provides a service; assumes the risks of starting and building a business; and receives personal and financial rewards for her/his efforts.

• private enterprise/free enterprise

• entrepreneur

• small business

__________________: a business that employs 500 or fewer people.

• private enterprise/free enterprise

• small business

• entrepreneur