Economic Systems

What questions does the social order answer?

• What will we produce?

• How will we produce it?

• Who gets it?

• Where do we produce it?

What are the factors of production?

• Land

• Labor

• Capital

• Economy

In a planned economy, which two types of isms are working together?

• Socialism and Communism

• Communism and Capitalism

• Capitalism and Socialism

• Communism and Marxism

In a free market economy, what does the government keep their hands off of?

• Production

• Commerce

• Trade

• Labor

• Land

"Scare resources will go to the most desired use, and they’ll be used efficiently." What is that quote an example of?

• Invisible Hand

• Communism

• Capitalism

• Socialism

• Free Market

The Invisible hand of the free market is the idea of what?

• That individuals and businesses meets society’s needs when they seek their own self-interest.  

• That individuals and businesses must control all aspects of the factors of production.

• That individuals and businesses create the factors of production themselves but outsource them to the government.

• That individuals and businesses cannot own the factors of production because it is illegal for them to.

In America how is power within the economy delegated?

• Both the companies and the government share control

• Companies have more power over the economy than the government

• Government has more power over the economy than the companies

• Neither companies nor government have control, the President controls the economy

Which answer is correct?

• North Korea - command economy /

  New Zealand - free market economy

• North Korea - free market economy /

  New Zealand - command economy

• North Korea - Communism

  New Zealand - Socialism

• North Korea - Socialism / New Zealand - Communism

Which of the following countries is an example of a mixed economy?

• United States

• China

• New Zealand

• North Korea

What is the basis of any type of economy?

• How involved the government is with it

• How involved the President is with it

• How involved the Legislative Branch is with it

• How involved the citizens are with it