Economic Systems Quiz

What is another name for Free Enterprise?

• Capitalism

• Socialism

• Traditional Economy

• Communism

In a Free Enterprise system, who owns goods and property?

• Tribal leaders

• The people

• The government

• Corporations

What determines prices in a Free Enterprise (capitalist) system?

• Social class

• Supply and demand

• Government regulations

• Tradition

What happens to prices when demand is high and supply is small?

• Prices fluctuate randomly

• Prices go down

• Prices go up

• Prices stay the same

What role does the government play in a Free Enterprise system?

• Determining all prices

• Ownership of all businesses

• Limited interference

• Complete control of the economy

What is commercial agriculture?

• Hunting and gathering

• Growing food for sale to others

• Growing food for personal use

• Subsistence farming

Which of the following is a characteristic of traditional economies?

• Rapid economic growth

• Subsistence agriculture

• Commercial industries

• Government ownership of property

What is the primary focus of cottage industries?

• Mass production

• Handmade goods

• Government planning

• Exporting goods overseas

Where are traditional economies commonly found?

• Urban industrial areas

• Rural non-industrial areas

• Capitalist economies

• Developed nations

Who developed the concept of communism?

• Adam Smith

• Karl Marx

• John Maynard Keynes

• Milton Friedman