Economic Systems

What are economic systems?

• A set of laws for governing a country

• The structure of methods and principles that a society uses to produce and distribute goods and services

• A collection of financial institutions

• The process of electing political leaders

What is a market in economics?

• A physical place where goods are sold

• A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade

• A website for online shopping

• A government-run system for distributing resources

What does economic freedom refer to in a market system?

• The freedom to travel and work in any country.

• The freedom to own property, make a profit, and choose what to produce, buy, and sell.

• The freedom to vote for any political party.

• The freedom to use any type of currency for transactions.

What is the role of competition in a market system?

• To ensure that all companies make the same amount of profit.

• To limit the number of products available in the market.

• Companies will strive for a greater share of the market by producing higher quality and more cheaply priced goods.

• To enforce government regulations on product quality.

What is profit in the context of a market system?

• The financial loss incurred in a transaction.

• The amount of money invested in a business.

• The financial gain made in a transaction.

• Selling everything the business owns

What does private property refer to in a market system?

• Property owned by the government

• Property owned by individuals or companies

• Property shared by the public

• Property owned by international organizations

What are public goods and services?

• Services provided by private companies for individual profit.

• Goods and services provided by the government for the use of all people.

• Products sold in public markets.

• Services offered by non-profit organizations exclusively to members.

Which of the following is an example of a public service?

• Public Education

• Restaurant dining

• Private tutoring

• Shopping malls

How are public goods and services typically funded?

• Through private donations.

• By charging user fees to all beneficiaries.

• Through taxes paid by the public.

• Through volunteer services.

What must every economic system answer due to scarce resources?

• How to eliminate scarcity

• How to invest in the stock market

• Three basic economic questions

• How to create more resources