Economic Systems Quiz

What is the study of how individuals, businesses, and nations make things, buy things, spend money, and save money called?

• Sociology

• Economics

• Anthropology

• Psychology

What is the basic problem of economics?

• Scarcity

• Abundance

• Inflation

• Unemployment

In a traditional economy, how are economic decisions made?

• By government planners

• By supply and demand

• By tradition and custom

• By private businesses

In a free enterprise economy, how are prices determined?

• By government planners

• By tradition and custom

• By supply and demand

• By private businesses

In a communist economy, who owns and operates all businesses?

• Private individuals

• Government

• Workers' cooperatives

• Foreign investors

In a socialist economy, who owns and operates many basic industries?

• Private individuals

• Government

• Workers' cooperatives

• Foreign investors

What is the main goal of communism?

• To achieve a classless society

• To maximize profits

• To promote individual freedom

• To protect workers' rights

What is the role of government in a free enterprise system?

• To control all economic decisions

• To provide essential services

• To promote equality among workers

• To enforce private property rights

Which economic system encourages private ownership of small businesses?

• Traditional economy

• Free enterprise economy

• Communist economy

• Socialist economy

What type of economy blends features of different economic systems?

• Traditional economy

• Free enterprise economy

• Communist economy

• Mixed economy