Economies and World Trade Quiz

What are the three main types of economic systems?

• Traditional, market, and command

• Market, socialism, and communism

• Capitalism, socialism, and communism

• Traditional, mixed, and command

In a market economy, who makes decisions about what things to produce?

• Government

• Private individuals and groups

• Central authority

• Communist Party

What is a mixed economy?

• An economy where the government owns all means of production

• An economy where decisions about production and distribution are made by a central authority

• An economy where private individuals and groups have the right to own property and businesses

• An economy where the government supports and regulates enterprise through decisions that affect the marketplace

What is a command economy?

• An economy where tradition and custom control all economic activity

• An economy where private individuals and groups have the right to own property and businesses

• An economy where decisions about production and distribution are made by a central authority

• An economy where factors of production are privately owned

What is the main goal of socialism?

• A fair distribution of wealth and economic opportunity

• Private ownership of all means of production

• Government control of all economic decisions

• Public ownership of necessary services and factories

What are the four types of economic activities?

• Primary, secondary, tertiary, and quaternary

• Agriculture, manufacturing, services, and information

• Traditional, market, mixed, and command

• Socialism, capitalism, communism, and free enterprise

What is the main difference between international trade and domestic trade?

• International trade involves the exchange of goods and services, while domestic trade involves the exchange of capital and labor

• International trade is more costly due to additional costs such as tariffs and border delays

• International trade is limited to trade in goods and services, while domestic trade involves trade in capital and labor

• International trade is only between developed countries, while domestic trade is between all countries

What are emerging markets?

• Nations in the process of rapid growth and industrialization

• Nations with a command economy

• Nations with a traditional economy

• Nations with a mixed economy

Which countries are part of the ASEAN-China Free Trade Area?

• China, Brazil, Russia, India, Mexico, Indonesia, and Turkey

• United States and Canada

• Mexico, Malaysia, and Turkey

• China and countries in the Association of Southeast Asian Nations (ASEAN)

What is the main purpose of world trade?

• To exchange capital and labor between countries

• To promote economic growth in less developed countries

• To import goods that make use of factors of production such as labor

• To exchange goods and services between countries