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WorksheetsEconomic Systems Review
Total questions: 37
Worksheet time: 37mins
Name
Class
Date
1.
Which of the following is NOT characteristic of a centrally planned economy?
a)
Government owns all land and capital
b)
Government makes all economic decisions
c)
Each collective or factory sets its own goals
d)
Each person is assigned a job
2.
What is the struggle among various producers for the consumer's business called?
a)
Socialism
b)
Competition
c)
Incentive
d)
Self-regulation
3.
Why does even a free market need some government intervention?
a)
to provide for things that the marketplace does not address
b)
ensure the gov't has freedom to tax as necessary
c)
Make sure the gov't can fulfill its needs for military
d)
so the gov't has some control over factor resources
4.
Which of the following is NOT a key economic question?
a)
What goods and services should be produced?
b)
How should these goods and services be produced?
c)
Who consumes these goods and services?
d)
How should it be ensured that goods/services are paid for?
5.
What does the process of specialization do for an economy?
a)
It eliminates unemployment
b)
It makes it more efficient
c)
It fosters competition
d)
It makes it easier to control
6.
How could the Chinese economy be characterized?
a)
Free Market
b)
Centrally Planned
c)
Mixed, but on the side of centrally planned
d)
Mixed, but on the side of free market
7.
What is one of the most important advantages of a free market?
a)
It can change rapidly
b)
it protects the less fortunate
c)
It is easy to regulate
d)
It encourages growth
8.
What incentive motivates a manufacturer to sell a product?
a)
Making profits on sales
b)
putting others out of business
c)
pleasing the consumer
d)
popularity of the product
9.
Which of the following was a free market philosopher?
a)
Karl Marx
b)
Vladimir Lenin
c)
Adam Smith
d)
Friedrich Engels
10.
Who wrote the Communist Manifesto?
a)
Karl Marx
b)
Adam Smith
c)
Ben Franklin
d)
Joseph Stalin
11.
Which of the following is characteristic of a traditional economy?
a)
Communities tend to be fast-growing
b)
They are usually based on light industrial work
c)
They have a high standard of living
d)
Children tend to have the same jobs as their parents
12.
What is the product market?
a)
Where payments are received for selling stuff to consumers
b)
Where income is received for supplying land/labor/capital
c)
where firms buy factors of production from households
d)
Where households buy goods/services that firms make
13.
In what kind of economy does the government make all the decisions?
a)
Socialist
b)
Centrally Planned
c)
Free Market
d)
Mixed
14.
What is the purpose of competition?
a)
to act as a regulating force in the marketplace
b)
to cause producers to try to put each other out of business
c)
to cause buyers to be careful about spending money
d)
to act as a motivating force behind the free market
15.
Which is the function of an economic system?
a)
to make sure all people have equal access to goods
b)
to produce and distribute goods/services
c)
to give all producers the same access to consumers
d)
to make sure people are paid for their labor
16.
Which is a condition that most people would NOT expect the safety net to provide for?
a)
Injuries
b)
Joblessness
c)
Natural Disasters
d)
Low Income
17.
How would the economy of Canada likely be characterized?
a)
Free Market
b)
Centrally Planned
c)
Mixed, but on the side of Free Market
d)
Mixed, but on the side of Centrally Planned
18.
What is an important advantage of a free market?
a)
It doesn't change unless the government directs it
b)
It offers a wide variety of goods/services
c)
It is easy to regulate
d)
It protects the less fortunate
19.
Who was the leader that introduced communism and central planning to the former Soviet Union?
a)
Karl Marx
b)
Joseph Stalin
c)
Vladimir Lenin
d)
Friedrich Engels
20.
What is the motivating force behind the free market?
a)
Competition
b)
the Invisible Hand
c)
Self-interest
d)
Specialization
21.
What could be a hardship for citizens of a transitioning country?
a)
Farmers would have to grow what the gov't said
b)
Poor quality goods available, quantity>quality
c)
workers would lose job security and guaranteed incomes
d)
Entrepreneurs would have fewer opportunities
22.
A person who believed in laissez faire would disapprove of ___.
a)
the invisible hand of the marketplace
b)
consumer sovereignty
c)
self-interest as the motivating force in the free market
d)
government funding of education
23.
Which does the gov't provide as part of a safety net for the people?
a)
General elections every 4 years?
b)
unemployment compensation
c)
a strong military defense
d)
regulation commerce
24.
You are an entrepreneur with an idea for a business, In which economy would you do best?
a)
Market
b)
Command
c)
Traditional
d)
Economy of Scale
25.
Why do markets exist?
a)
Ensure the gov't doesn't intervene in production
b)
provide self-sufficient people with places to exchange ideas
c)
ensure economic equity for all people
d)
allow people to buy what they need and sell what they make
26.
Households pay firms for goods/services. This takes place in the ___ market.
a)
Product
b)
Factor
c)
After
d)
Traditional
27.
Which goal is hard to achieve in a pure free market system?
a)
Economic efficiency
b)
economic equity
c)
economic freedom
d)
economic growth
28.
Gov't prints posters to inspire workers to be more productive. Which type of economy?
a)
Weak economy
b)
Traditional Economy
c)
Market Economy
d)
Centrally Planned Economy
29.
Democratic means should be used to distribute wealth evenly throughout a society
a)
Socialism
b)
Communism
c)
Capitalism
d)
Authoritarianism
30.
Why were collectives in the Soviet Union inefficient?
a)
Farms were too small
b)
Farmers had to pay for tools/supplies themselves
c)
Guaranteed income and few incentives to produce more
d)
Planners ignored farms in favor of making consumer goods
31.
Which is NOT a weakness of Centrally Planned Economies?
a)
Most workers lack job security
b)
Consumers' needs are not met
c)
Workers lack incentives to be innovative
d)
Individual freedoms are sacrificed for societal goals
32.
China's economy is in transition. What does this mean?
a)
Investments are determined by state control
b)
Economy is moving from Controlled to Free Market
c)
Individual firms are being sold to the state
d)
Gov't rarely interferes with the free market
33.
In which list of mixed economies does the market system dominate?
a)
France, Canada, South Africa, UK
b)
US, UK, Singapore, Hong Kong
c)
Cuba, Greece, China, US
d)
Russia, Peru, France, Canada
34.
To sell state-run firms to individuals
a)
Privatize
b)
Localize
c)
Collective
d)
Safety Net
35.
Level of economic prosperity
a)
Standard of Living
b)
GDP
c)
Communism
d)
Self-interest
36.
Expectation that encourages people to behave in a certain way
a)
Free enterprise
b)
Incentive
c)
Standard of Living
d)
Collective
37.
I can label the circular flow model of mixed economies and explain the relationships in the markets.
a)
Yes, I can!
b)
No, I need to study
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