Economics Unit 1 Lesson 3 - Economic Systems

What is the primary characteristic of a capitalist economy?

• Government ownership of resources

• Private ownership of resources

• Equal distribution of wealth

• Centralized economic planning

Which economic system is characterized by government control over all economic decisions?

• Market economy

• Mixed economy

• Command economy

• Traditional economy

In the circular flow model, what do households provide to firms in the factor market?

• Goods and services

• Wages and salaries

• Factors of production

• Taxes

What is the main goal of economic equity?

• Maximizing profits

• Ensuring fair distribution of wealth

• Increasing production

• Reducing government intervention

Which term refers to the legal protection of an inventor's new product or process?

• Copyright

• Patent

• Trademark

• Contract

What is the primary motivation for firms in a free enterprise system?

• Public welfare

• Profit motive

• Government subsidies

• Social equality

Which economic system combines elements of both capitalism and socialism?

• Command economy

• Market economy

• Mixed economy

• Traditional economy

What is the term for payments made by the government to individuals without any goods or services being received in return?

• Factor payments

• Transfer payments

• Profit

• Wages

Which concept refers to the ability of individuals to make their own economic decisions?

• Economic security

• Economic freedom

• Economic stability

• Economic planning

What was a major effect of the Industrial Revolution on economic systems?

• Decrease in production efficiency

• Shift from agrarian to industrial economies

• Increase in government control

• Return to traditional economies