Crash Course Economics: Economic Systems

What three questions do economic systems answer? 

• What will we buy?

  How will we buy it?

  Who will buy it?

• What will we produce?

  How will we produce it?

  Who gets it?

What is communism according to Karl Marx? 

• The government stays out of the economy and class divisions exist

• The abolition of private property where there is a true classless society

Who owns the factors of production in a free market economy?

• Government

• Individuals

What is the main idea of the "Invisible Hand" theory?

• Society progresses when producers and consumers think about the government first and themselves second.

• Society progresses when producers and consumers act in their own self interest.

What is the role of government in a free market economy?

• The government regulates economic activity to ensure fair competition and protect consumers

• The government protects business owners from consumer lawsuits

• The government guarantees profits for business owners

Who owns and controls the factors of production in a Command Economy?

• Individuals

• Government

Most modern nations have what type of economy?

• Command Economy

• Mixed Economy

What idea represents the circulation of goods, services and resources between producers and consumers?

• Production Possibilities Curve

• Triangular Flow Model

• Circular Flow Model

• Scarcity Model

Which type of economic system does China have? 

• Mixed Economy- Socialist Market Economy

• Communist Economy

What famous economist said, "There are no solutions, only trade-offs"?

• Adam Smith

• John Maynard Keynes

• Friedrich Hayek

• Thomas Sowell