Economic Systems Quiz

In which economic system is the protection of private property rights essential?

• Command

• Traditional

• Free Market

• Socialism

In which economic system does the government answer all three of the big economic questions?

• Command

• Traditional

• Free Market

• Mixed

In which type of economic system are decisions based on individual choice and voluntary exchange?

• Mixed

• Free Market

• Traditional

• Command

In which of the following systems are there NO private property rights?

• Command

• Traditional

• Free Market

• Socialism

According to Adam Smith, markets are guided by the "invisible hand" because

• public ownership increases output.

• traditions adapt to what is most efficient.

• consumers' choices will drive business decisions.

• governments easily identify the best choices.

Which of the following advantages are associated with Adam Smith?

• Freedom of economic choice.

• Near full employment.

• Stable economic system.

• Built in safety net.

A group of seniors decide earn money by helping people move. They will load and unload boxes on and off moving trucks for $12 an hour. What they offer is considered:

• A good.

• A service.

• Macroeconomics.

• Marginal benefit.

If you have to decide whether to study Friday night or spend time with your friends, this is:

• marginal utility.

• marginal benefit.

• a tradeoff.

• the opportunity cost.

In a bakery, items such as the ovens, mixers and refrigerators would be

• capital

• Entrepreneurship

• land

• labor

Two accountants are trying to help their company make a decision. They study all the things people want and try to figure out how to use the limited resources they have available. They would use ______.

• macroeconomics.

• factors of production.

• economics.

• None of the above.