Econ Quiz 2

Who is considered the father of Communism and Socialism, and authored The Communist Manifesto?

• Joseph Stalin
• Leon Trotsky
• Karl Marx
• Vladimir Lenin
• Vladimir Putin

What is the term for a place where goods are bought and sold?

• Store
• Market
• Building
• Office
• Shop

What economic concept advocates for minimal government intervention in business and allows the free market to regulate itself?

• Socialism
• Opportunity Cost
• Supply and Demand
• Laissez Faire
• Voluntary Exchange

The United States has an economic system that allows us to make our own choices. Which economic goal allows us to have this lack of restrictions?

• Economic Growth
• Economic Freedom
• Economic Equity
• Additional Goals

“Hey, Mr. Bhullar! Have you heard the news? Sprint is now selling the latest Samsung Galaxy phone to compete with the Apple iPhone 16. Now I don’t know which phone I’m going to buy!” said James. What market principle is best demonstrated by Sprint selling the latest Samsung Galaxy phone to compete with the Apple iPhone 16?

• Private Property and Markets
• Limited Government Involvement
• Voluntary Exchange
• Competition
• Opportunity Cost

Elon Musk purchased Twitter and transitioned it into a privately owned company. What term best describes this process?

• Nationalize
• Publicize
• Privatize
• Criticize
• Economize

Exchanging Pokémon, or when sports teams trade players after both sides recognize the benefits, is a good example of which feature of a market economy?

• Communism
• Socialism
• Voluntary Exchange
• Competition
• Laissez Faire

Adam Smith’s “Invisible Hand” theory states that the free market _______________.

• self-destructs
• self-promotes
• self-regulates
• self-motivates

Use the Production Possibilities Frontier graph of a business producing Good Y and Good X, which would be the business producing at an INEFFICIENT rate, and which would be business producing at an IMPOSSIBLE (or UNATTAINABLE) rate?

• Point C would be inefficient; Point E would be Unattainable/Impossible
• Point E would be inefficient; Point C would be Unattainable/Impossible
• Points A and B would be inefficient; Points D and F would be Unattainable/Impossible
• Points D and F would be inefficient; Points A and B would be Unattainable/Impossible

Which of the following is a key characteristic of a traditional economy?

• Centralized government planning
• Reliance on customs and rituals
• Competition between private firms
• Government ownership of all resources