(ESL) Unit 5: Economic Systems Test Corrections

What is the main economic activity in a traditional economy?

• Farming

• Manufacturing

• Trading

• Investing

Which economic system is characterized by the government owning and controlling the factors of production?

• Subsistence Agriculture

• Command Economy

• Free Market Economy

• Cottage Industry

In which economic system do people own and control the factors of production?

• Socialism

• Commercial Agriculture

• Capitalism

• Traditional Economy

What is the term for the quantity and availability of something?

• Supply

• Demand

• Scarcity

• Profits

Who determines the economic factors in a command economy?

• The Government

• The Consumers

• The Producers

• The Market

What is the term for having a limited supply of something?

• Supply

• Demand

• Scarcity

• Profits

What is the term for the people who buy products?

• Producers

• Consumers

• Suppliers

• Distributors

What is the term for the financial gain or the money left after all expenses are paid?

• Supply

• Demand

• Scarcity

• Profits

What are the things needed for creating products or services called?

• Materials

• Labor

• Money

• Factors of Production

Which economic system is also known as communism?

• Command Economy

• Traditional Economy

• Socialism

• Free Market Economy