Economic Systems Quiz

Which of the following is NOT a characteristic of capitalism?

• State control of major enterprises

• Private choice in investments

• Free market competition

• Private ownership of capital goods

What is a key feature of a socialist economic system?

• Private ownership of all resources

• Government ownership of strategic enterprises

• Unregulated market competition

• Minimal government intervention

In a mixed economy, what role does the government play?

• Complete control over all economic activities

• No role at all

• Intervenes to achieve social goals

• Only regulates private businesses

Which of the following is an advantage of capitalism?

• Equal wealth distribution

• High levels of regulation

• Government-managed production

• Incentivizes private sector growth

What is a disadvantage of capitalism?

• Promotes social welfare

• Ensures equitable resource distribution

• Leads to income inequality

• Encourages innovation

How does socialism aim to narrow the class gap?

• By promoting private entrepreneurship

• By encouraging monopolies

• Through equal wealth distribution

• By reducing government spending

What is a potential downside of socialism?

• Minimal government spending

• Excessive competition

• Lack of social safety nets

• High tax burden

What is a common criticism of a mixed economy?

• Lack of government intervention

• Overextension of government role

• Complete reliance on free market

• Absence of private sector

Which economic system is best suited for a country with abundant natural resources and a small population?

• Mixed economy

• None of the above

• Socialist economy

• Capitalist economy

Which economic system allows for both private ownership and government intervention?

• Capitalist economy

• Socialist economy

• None of the above

• Mixed economy