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WorksheetsChapter 6 Economic Systems
Total questions: 25
Worksheet time: 13mins
Each society answers the three basic economic questions based on
its unique combination of values and goals.
the number of factor payments.
its degree of economic growth.
the desire to achieve economic freedom.
To improve its standard of living, a nation’s economy must
remain stable.
grow through innovation.
reach economic equity.
allow the central government to make economic decisions.
How does a society determine who will get what is produced?
by its distribution of income
by factor payment amounts
by its needs and wants
by economic equity
Traditional economies are usually
small, close communities that welcome change and new technology.
large, widespread communities that welcome change and new technology.
large, widespread communities that are able to deal effectively with environmental disaster.
small, close communities that avoid change and new technology.
What must a nation’s economy do in order to improve the standard of living?
remain stable
grow
reach economic equity
allow central planning
Where are traditional economies usually found?
in small communities that welcome change
in large communities that welcome change
in large communities that are able to deal with environmental disaster
in small communities that avoid change
Why are free market economies able to attain economic growth?
Consumers can purchase all the goods they need, which causes firms to produce more.
Competition encourages innovation, which causes growth.
Everyone is acting in their own self-interest, which motivates market growth.
Firms keep producing incentives to encourage households to purchase more goods.
What “invisible hand” directs the free market?
incentives and efficiency
specialization
circular flow
competition
Why are free market economies able to grow?
Consumers can buy all needed goods.
Competition encourages innovation.
Everyone acts in their own interest.
Firms keep producing incentives.
Which of the following is part of communism but not socialism?
central planning
government controlled services
authoritarian government
government controlled resources
The United States economy is a mixed economy
based on a traditional economy, but allowing some government intervention.
based on a centrally planned economy, but limiting government intervention.
based on a free market, allowing no government intervention.
based on a free market, but allowing some government intervention.
Government intervention in a modern economy is useful because
the needs and wants of a modern society are always met by the marketplace.
the marketplace has many incentives to create public works such as parks.
governments are more able to meet some needs and wants of modern society.
free market principles do not encourage growth.
The United States government intervenes in the economy in order to
provide competition for private firms.
impose barriers on foreign trade.
promote the general welfare.
protect laissez-faire
