Economic Systems

The government owns or controls most resources and businesses in a _____________ economic system

• Communist Command

• Market

• Capitalistic

• Mixed

An entrepreneur, rather than the government, is most likely to own the business's land, building, and equipment in a ____________ economy.

• Communist Command

• Traditional

• Market

• Socialist Command

Which of the following types of economic systems adopts the fewest new ideas or improvements?

• Market

• Socialist Command

• Traditional

• Command

Private enterprise is an economic system in which:

• the government owns major industries and individuals own consumer goods

• a national planning board assumes all responsibility

• the government owns everything

• individuals own both major industries and consumer goods

What is the main reason for going into business in a private enterprise system?

• the competition

• the profits

• the market

• to be with friends

What makes it difficult for new firms to enter a market?

• Antitrust laws

• Collusion

• Cartel

• Barriers to entry

What type of market structure only has one seller?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

What is one way that firms in a monopolistic competition engage in non-price competition?

• Production

• Advertising

• Variable costs

• Fixed costs

What is a market dominated by a few sellers?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

In what type of market structure do both consumers and producers compete directly with supply/demand?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition