Economic Systems Quizs

The main incentive for people to actively compete in a market economy is

• to promote the good of the people.
• to promote the good of the state.
• to make the world a better place.
• the profit motive.

When the government dictates the economy, it is a

• traditional economy.
• command economy.
• market economy.
• mixed economy.

The three basic economic questions are

• What should be produced? How should it be produced? Who gets to consume it?
• How should it be produced? Who produces it? Where is it produced?
• Why should be it be produced? Who produces it? Who gets to consume it?
• Why should it be produced? How should it be produced? Where is it produced?

When individuals dictate the economy, it is a

• traditional economy.
• command economy.
• market economy.
• mixed economy.

The free enterprise system of the United States is best described as a

• free market economy.
• traditional economy.
• mixed economy with limited government intervention and a great deal of economic freedom.
• mixed economy with equal amounts of economic freedom and government intervention.

When does the dam become a public good?

• When private companies decides to build it.
• If the farmers pay for the construction.
• When the government decides to build it.
• When consumers make the decision to build one.

People who believe economies should be mixed are often decisively labeled as

• socialists.
• fascists.
• communists.
• all of the above.

A person who believes that economic equality is only possible if the public controls the economy.

• socialist
• communist
• capitalist
• authoritarian

Which are NOT characteristics of the free enterprise system?

• economic freedom, private property rights, and profit motive
• private property rights, competition, economic freedom
• tight government control, redistribution of resources, collectivization
• voluntary exchange, profit motive, economic freedom

What is the function of an economic system?

• To makes sure all people have equal access to goods
• To organize a society's production and distribution of resources.
• To give all producers the same access to consumers
• To make sure people are paid for their labor