Economic Systems Test Review

An economic system is best defined as a(n)

• organized method of allocating scarce resources.
• way to determine opportunity cost.
• visual depiction of the tradeoffs incurred by society.
• organized way to fund educational endeavors.

Which of the following are considered the three economic questions?

• What goods and services should be produced?
• How should these goods and services be produced?
• Who should these goods and services be produced for?
• Why should we produce goods and services?

This economy relies on the way things have always been done, custom and rituals dictate a person's role in society.

• traditional
• market
• command
• mixed

Economic decisions are based on the voluntary exchange of households and firms in this type of economic system

• traditional
• market
• command
• mixed

Like the United States, this system is based on market principles, but accepts the role of government in a limited role.

• mixed
• traditional
• market
• command

In this type of system, the economic questions are based upon central planners in government.

• traditional
• command
• market
• mixed

All of the following would be countries that at one time operated on a command style system EXCEPT

• North Korea
• Soviet Union
• Cuba
• United States

All of the following would be countries that currently operate on a market style system EXCEPT

• United States
• Hong Kong
• South Korea
• North Korea

Making the most of scarce resources focuses on the goal of economic

• efficiency
• freedom
• predictability
• security

You can buy or sell most goods and services in the U.S. because of economic

• efficiency
• freedom
• equity
• innovation