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Module 5 Lesson 2 Review - Economic Systems

Total questions: 15

Worksheet time: 7mins

Name
Class
Date
1.

In which economic system is ALL property owned by individuals?

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

d)

Mixed Economy

2.

In which economic system is ALL property owned by the government ("for the good of the country")?

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

d)

Mixed Economy

3.

In which economic system is some property owned by the government and some is owned by individuals?

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

d)

Mixed Economy

4.

A ______________ economy is guided primarily by custom, habit, and ritual.

a)

Traditional

b)

Planned/command

c)

Mixed

d)

Free Market

5.

A _____________ economy is completely determined and controlled by a central planning authority or the government

a)

Traditional

b)

Planned/Command

c)

Mixed

d)

Free Market

6.

A 100% free market without government involvement doesn't really exist in the modern world.

a)

True

b)

False

7.

The vast majority of the world's economies are mixed - they are market based economies with some extent of government involvement.

a)

True

b)

False

8.

Businesses known as _______________________ make finished products from raw materials.

a)

manufacturing industries

b)

retail industries

c)

collective industries

d)

supply and demand

9.

In a _______________________, few limits are placed on business activities.

a)

command economy

b)

free enterprise system

c)

traditional economy

d)

dictatorship

10.

Countries with less productive economies and a lower quality of life are known as ________________.

a)

developed countries

b)

developing countries

c)

high end retail countries

d)

leader countries

11.

Which freedom does the free enterprise system promote?

a)

the freedom of religion

b)

the freedom of press

c)

the freedom to bear arms

d)

the freedom to own property

12.

Capitalism

a)

command

b)

market

c)

traditional

13.

Which of the following best explains a mixed economy?

a)

Private ownership of the factors of production and regulation of businesses by government

b)

Market exchanges answer all three of the big economic questions

c)

Family customs and traditions determine what and how to produce a good

d)

Government answers all three of the big economic questions

14.

_____________ are a positive incentive for entrepreneurs to start a business despite the risks.

a)

Pride

b)

Wealth

c)

Profits

d)

Being an employer

15.

What is a country’s gross domestic product?

a)

a country’s level of industrial development

b)

a country’s level of health care and education

c)

the measure of literacy and life expectancy in a particular country

d)

the value of all goods and services produced within a country in a single year