WorksheetsFree Market Systems
Total questions: 14
Worksheet time: 7mins
Which is not a basic principle of a market system
competition
voluntary exchange
socialism
self-interest
Which of the following does not follow with the basic principles of market systems?
People are driven by their desire to make a profit
competition is discouraged
people feel best when they freely trade for what they want
innovation is encouraged
What do businesses generally do when demand for a product decreases?
Decrease the price
Increase the price
Keep the price the same
Produce more
In a free market, one can expect a company to charge the highest possible prices they can to make the most money due to the concept of
Competition
Voluntary exchange
Profit motive
Private property
All of the following contribute to a free market system except
Economic freedom
Competition
Self-Interest
Government ownership
Which broad social goal is important in a market system but not as important in a centrally-planned (command) one?
Equity
Efficiency
Security
Stability
Which economic system relies solely on the government to produce and distribute goods and services?
Market
Centrally-planned (command)
Capitalism
Mixed
Which actions would a coffee producer most likely take in response to a increase in the price it can charge for coffee
Produce more coffee
Produce less coffee
Do nothing
None of the above
