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Econ 2.3 (2025)

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

A society's way of coordinating the production and consumption of goods and services.

a)

economic system

b)

government

c)

Federalism

d)

economic equity

2.

The three key questions all economies must answer are

a)

who, what, how

b)

what, how, for whom

c)

huh, really, no way

d)

who pays, how much, what is it

3.

How many economic goals must each economy address in some capacity?

a)

3

b)

6

c)

10

d)

1

4.

What economic goal means that goods and services we count on are available and affordable. Focus on inflation (prices and purchasing power of money) and employment.

a)

freedom

b)

equity

c)

stability

d)

growth

5.

What economic system focuses on security and stability as economic goals?

a)

traditional

b)

command

c)

market

6.

What economic system focuses on equity and security?

a)

traditional

b)

command

c)

market

7.

The most famous example of a failed command economy is

a)

France

b)

South Korea

c)

The Soviet Union

d)

Middle Earth

8.

Most economies in the world are

a)

market

b)

mixed

c)

traditional

d)

command

9.

The role of a government in a mixed economy is

a)

protection

b)

regulation

c)

public benefits like dams (yes, I said it), highways

d)

all of these

10.

In a free enterprise system like the US has, there are key characteristics. Which of the following is not one?

a)

limited government

b)

competition

c)

equal outcome

d)

profit motive

e)

property rights

11.

Which of the following is an element of a command economy?

a)

The government decides what will be produced.

b)

The market decides what will be produced.

c)

The market decides the distribution of income.

d)

The market decides how it will be produced.

12.

A mixed economy combines free-market principles with which of the following?

a)

a capitalist system

b)

government planning

c)

cost-benefit analysis

d)

the circular flow model

13.

The United States most closely resembles which of the following types of economies?

a)

Market/free-enterprise

b)

Command/centrally-controlled

c)

Traditional/custom-based

d)

Socialist/Marxist

14.

In the market/free enterprise system, who of the following most influences the market?

a)

high-level technical planners

b)

government central bankers

c)

manufacturers based on long-range economic forecasts

d)

the interaction of numerous buyers and sellers

15.

In a market economy, which of the following provides the primary incentive to produce?

a)

government purchases of goods and services

b)

a perfectly competitive system

c)

the desire for economic equity

d)

the motivation to make a profit

16.

In the Circular Flow Model activity, what did Econos represent?

a)

utility

b)

the margin

c)

opportunity cost

d)

models