WorksheetsReview of Economic Systems
Total questions: 10
Worksheet time: 3mins
As a factor of production, the instruction provided by a teacher is considered—
labor
resources
capital
entrepreneurship
Purchasing a new piece of equipment for one's factory is affecting which factor of production?
Entrepreneurship
Physical capital
Land resources
What are the three basic economic questions all societies must answer?
Who gets to produce goods and services, who gets to consume them, and who collects the profits?
Why should goods and services be produced, when should they be produced, and how should they be produced?
Where should goods and services be produced, who should sell them, and who should get the profits?
What goods and services should be produced, how should they be produced, and who will consume them?
Key advantages of free market economic systems include
rising prices, specialization, negative incentives, and multiple markets.
online markets, producer sovereignty, self-interested consumers, and low prices.
economic efficiency, economic freedom, economic growth, and variety of goods.
positive incentives, negative incentives, specialized consumers, and efficient labor.
In a free market system, the concept of consumer sovereignty (or consumer power) means that
consumers have the power to decide through their actions what goods and services get produced.
producers are in an ongoing struggle with consumers over control of the marketplace.
government must intervene to ensure fair competition between consumers and producers.
consumers are not bound to accept the positive incentives offered by producers.
Which of the following is typical of a centrally planned economy?
competition among producers
consumer power
government control
private property
Which of the following represents a difference between mixed and communism?
Mixed requires central control of all productive resources; communism does not.
Mixed may allow some free market practices; communism does not.
Mixed emphasizes the equal distribution of wealth; communism does not.
Socialism depends on authoritarian government; communism does not.
What is a disadvantage of central planning?
no emphasis on economic equity
lack of economic efficiency
too much individual freedom
overreliance on profit incentive
What might be the economic benefit of the government providing a public good rather than the private sector?
decreased prices for the good
decreased cost for the good
increased taxes needed to provide the good
greater efficiency in providing the good
The distribution of income received in the form of rent, wages, or interest is the main factor that determines
how goods and services are produced.
where goods and services are consumed.
who produces goods and services.
who consumes goods and services.
