Economic Systems

The government owns some major industries like railroads and uses democratic methods to distribute wealth more equitably. Which economic system is this?

• socialism
• capitalism
• traditional
• communist

Which of the following would happen only in a communist economy?

• A.The government promotes competition 
• The government provides incentives for innovation
• The government emphasizes the production of consumer goods
• The government controls all business activities

True or False: An economic system explains how a society makes and sells products.

• True
• False

Eugene Debs was a...

• capitalist
• socialist
• communist

Karl Marx's ideas inspired

• free market economies
• democracies
• technological innovation
• dictatorships

The United States practices

• pure capitalism
• pure socialism
• pure communism
• mixed market

Adam Smith argued that wealthy nations... 

• regulate business so everyone is equally wealthy
• allow businesses to rise/fall on their own merits
• have everyone share the means of production
• give businesses financial support from the government

This economic system has the MOST government control...

• capitalism
• mixed market
• communism
• socialism

This economic system has the LEAST government control...

• socialism
• mixed market
• communism
• capitalism

Which of the following is NOT a positive aspect of capitalist economies?

• allows for economic growth
• opens opportunities for social mobility
• offers protections for individuals
• businesses rise and fall on their own merits