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Economic Systems

Total questions: 19

Worksheet time: 25mins

Name
Class
Date
1.

The ability of people to make their own economic decisions without interference from the government.

a)

Economic Equity

b)

Economic Freedom

c)

Economic Growth

d)

Economic Stability

2.

An economic system in which decisions about production and consumption are based on custom and tradition.

a)

Traditional

b)

Socialism

c)

Capitalism

d)

Communism

3.

Which of the following statements is NOT true of a traditional/subsistence economic system?

a)

Economic stability and economic security are the main priorities in this system.

b)

New ideas, new technology, and new ways of doing things are encouraged.

c)

People work to provide enough for their own needs and those of their families.

d)

People live much as their ancestors did hundreds or thousands of years ago.

4.

Which of the following advantages was a traditional/subsistence economic system designed to provide?

a)

Individuals are generally free to make their own decisions about their jobs.

b)

Production of goods is highly efficient which increases their standard of living.

c)

The system is environmentally friendly – people striving to live in harmony with nature.

d)

Traditional economies continue to thrive as the modern economies exert an ever-growing influence.

5.

Which of the following statements best describes a capitalist/market economic system?

a)

Healthcare and other public services are available to everyone

b)

People live much as their ancestors did hundreds of years ago

c)

Private ownership of businesses is encouraged

d)

All resources are meant to be equally distributed to everyone in society

6.

Which of the following advantages was capitalism designed to provide?

a)

Job opportunities are often divided along gender lines.

b)

Many people can achieve wealth if they are willing to work hard.

c)

The government makes all major decisions about what will be produced.

d)

Volunteer work is highly profitable and is a very desirable career choice.

7.

Which of the following statements best describes communist economic system?

a)

People only grow and produce enough for themselves and their family.

b)

Healthcare and other public services are available to everyone for little or no cost.

c)

People are free to own private property including farms, businesses, and housing.

d)

The three basic economic questions are answered by the government.

8.

Which of the following advantages was communism designed to provide?

a)

Consumer satisfaction is high with a wide variety of choices available.

b)

Resources could be rerouted to where they were needed the most.

c)

The government offers financial incentives for hardworking individuals.

d)

There is a lot of individual freedom for people to choose a career.

9.

Which of the following advantages was socialism designed to provide?

a)

People enjoy a wide range of individual freedoms as both workers and consumers.

b)

The primary goal is to accumulate wealth and goods for the ruling class.

10.

Which of the following statements is NOT true of a socialist/mixed economic system?

a)

Nearly every country in the world has some degree of socialism including the U.S.

b)

Socialism only allows for private ownership of resources and property - there is no public property.

c)

The government uses a tax system to provide everyone with their basic needs.

d)

The system focuses on how society is improved for everyone.

11.

An economic goal in which an economy is expanding and producing more and better goods and services.

a)

Economic Growth

b)

Economic Equity

c)

Economic Stability

d)

Economic System

12.

An economic goal in which the goods and services people count on are available when they want them.

a)

Economic Equity

b)

Economic Growth

c)

Economic Stability

d)

Economic System

13.

Which of the following advantages was socialism designed to provide?

a)

Government regulations, such as child labor laws or limiting the amount of pollution, are guaranteed throughout the world.

b)

Government-run programs in healthcare and education limit choices for citizens.

c)

People enjoy a wide range of individual freedoms as both workers and consumers.

d)

The primary goal is to accumulate wealth and goods for the ruling class.

14.

The fairness with which an economy distributes its resources and wealth.

a)

Economic Equity

b)

Economic Growth

c)

Economic Stability

d)

Economic System

15.

Cho lives in Myanmar where her father grows just enough food to feed his family. He is farming the same land Cho’s great-grandfather farmed years before. Years from now, the land will be passed down to Cho’s brothers. Cho’s economic system is…

a)

Traditional

b)

Capitalism

c)

Communism

d)

Socialism

16.

Rikkard and Jaana are guaranteed decent living conditions by their government. In addition to having all medical bills paid, they receive payments when wages are lost due to illness to help cover other expenses. Rikkard and Jaana’s economic system is…

a)

Traditional

b)

Capitalism

c)

Communism

d)

Socialism

17.

Kim lives in a country that ended private ownership of land and created several large government-owned farms. The government also took control of all the businesses and industries in this country. The economic system Kim’s country has is…

a)

Traditional 

b)

Capitalism

c)

Communism

d)

Socialism

18.

Anna operates her business and carefully follows all federal and state regulations. She pays her share of taxes and receives many benefits from the government including free education through college. The economic system Anna’s country has is…

a)

Traditional

b)

Capitalism

c)

Communism

d)

Socialism

19.

Lanii lives in a country where the government does not interfere, giving her freedom to operate her business in a manner that is best for her. She can increase production when demand is high and lower it when demand is low. Lanii keeps all her profits and does not have to support the poor. The economic system Lanii’s country has is…

a)

Traditional

b)

Capitalism

c)

Communism

d)

Socialism