WorksheetsEconomic Systems Quizs
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
The main incentive for people to actively compete in a market economy is
a)
to promote the good of the people.
b)
to promote the good of the state.
c)
to make the world a better place.
d)
the profit motive.
2.
When the government dictates the economy, it is a
a)
traditional economy.
b)
command economy.
c)
market economy.
d)
mixed economy.
3.
The three basic economic questions are
a)
What should be produced? How should it be produced? Who gets to consume it?
b)
How should it be produced? Who produces it? Where is it produced?
c)
Why should be it be produced? Who produces it? Who gets to consume it?
d)
Why should it be produced? How should it be produced? Where is it produced?
4.
When individuals dictate the economy, it is a
a)
traditional economy.
b)
command economy.
c)
market economy.
d)
mixed economy.
5.
The free enterprise system of the United States is best described as a
a)
free market economy.
b)
traditional economy.
c)
mixed economy with limited government intervention and a great deal of economic freedom.
d)
mixed economy with equal amounts of economic freedom and government intervention.
6.
When does the dam become a public good?
a)
When private companies decides to build it.
b)
If the farmers pay for the construction.
c)
When the government decides to build it.
d)
When consumers make the decision to build one.
7.
People who believe economies should be mixed are often decisively labeled as
a)
socialists.
b)
fascists.
c)
communists.
d)
all of the above.
8.
A person who believes that economic equality is only possible if the public controls the economy.
a)
socialist
b)
communist
c)
capitalist
d)
authoritarian
9.
Which are NOT characteristics of the free enterprise system?
a)
economic freedom, private property rights, and profit motive
b)
private property rights, competition, economic freedom
c)
tight government control, redistribution of resources, collectivization
d)
voluntary exchange, profit motive, economic freedom
10.
What is the function of an economic system?
a)
To makes sure all people have equal access to goods
b)
To organize a society's production and distribution of resources.
c)
To give all producers the same access to consumers
d)
To make sure people are paid for their labor
11.
Program that uses cash transfers to the elderly retired and people who are disabled.
a)
TANF
b)
Social Security
c)
SNAP
d)
Medicaid
12.
A shared good or service for which it would be inefficient or impractical to make consumers pay individually is call as
a)
consumer good.
b)
durable good.
c)
public good.
d)
capital good.
13.
When customs dictate the economy, it is a
a)
traditional economy.
b)
command economy.
c)
market economy.
d)
mixed economy.
14.
An economic system characterized by private or corporate ownership of capital goods; investments are driven by private decision, rather that state control.
a)
command economy
b)
free enterprise
c)
socialism
d)
transition economy
15.
Why does the American Free Enterprise System provide a safety net?
a)
free markets tend to spread wealth unevenly.
b)
free markets always distribute resources in a fair manner.
c)
people are lazy and do not like to work.
d)
the free market solves the problem of providing public goods.
16.
In mixed economies, the factors of production are owned
a)
publicly.
b)
privately.
c)
publicly and privately.
d)
communally.
17.
In a free enterprise system, who determines what to produce?
a)
the consumer
b)
the entreprenuer
c)
the government
d)
the regulators
18.
One of the disadvantages of a market economy is that it
a)
does not care for those unable to compete.
b)
is innovative and makes quality products.
c)
utilizes barter in most transactions.
d)
moves towards equilibrium in the market.
19.
One disadvantage of a mixed economy is that
a)
income is distributed so that no one is rich or poor.
b)
it produces negative externalities.
c)
some economic freedoms are not available.
d)
incentives include the profit motive and public good.
20.
In which system is the role of government to robustly regulate the market?
a)
mixed
b)
traditional
c)
market
d)
command
100 %
