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ETT CH 2

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

In a capitalist system, most property is

a)

private property.

b)

owned by the government.

c)

regulated by the government.

d)

owned by banks.

2.

A major characteristic of a pure market economy is

a)

unrestricted competition.

b)

an oversupply of labor.

c)

strong government planning.

d)

regulated prices.

3.

It is easier to start your own business in a

a)

command economy.

b)

controlled economy.

c)

traditional economy.

d)

free enterprise system.

4.

The word "equity" means

a)

profitability

b)

fairness

c)

enough

d)

expansion

5.

Pure socialism is characterized by

a)

a complete absence of government.

b)

decision making based on traditions and customs.

c)

centralized economic planning and state ownership of the factors of production.

d)

individual ownership of the factors of production and economic freedom.

6.

According to Adam Smith,

a)

the role of the government is to allocate resources.

b)

government should not interfere in the marketplace.

c)

a mixed economy combines all of the benefits of a command and a market economy.

d)

left to themselves, individuals would mishandle the economy.

7.

The economic goals of the American free-enterprise system include

a)

freedom, equity, and growth.

b)

profit, traditions, and government control.

c)

socialism that evolves into pure communism.

d)

choice, central planning, and security.

8.

Karl Marx believed that

a)

capitalism would die out and pure communism would eventually replace it.

b)

a government should interfere as little as possible in a nation’s economy.

c)

capitalists would eventually crush the proletariat.

d)

capitalism was the ultimate answer to all of society’s economic problems.

9.

Another term for a capitalist system is a

a)

command economy.

b)

market economy.

c)

communist economy.

d)

traditional

10.

the term Karl Marx used to refer to workers

a)

proletariat

b)

competition

c)

poor

d)

laissez-faire

11.

economic system in which the government minimizes its interference in the economy

a)

command

b)

communism

c)

laissez-faire

d)

socialism

12.

economic system that combines features of a market economy and a command economy

a)

traditional

b)

mixed

c)

laissez-faire

d)

Standard

13.

the material well-being of an individual, group, or nation

a)

wealth

b)

profit incentive

c)

Standard of living

d)

private property

14.

desire to make money that motivates people to produce and sell goods and services

a)

profit

b)

profit incentive

c)

wealth

d)

standard of living

15.

amount left over after all the costs of production have been paid

a)

proletariat

b)

economic efficiency

c)

standard of living

d)

profit