Economics and Scarcity Quiz

What is a benefit of a command economy in terms of employment?

• High unemployment

• Low unemployment

• High competition

• Low job security

Why might a command economy have low innovation?

• High consumer demand

• No incentive to innovate

• Abundant resources

• High competition

What is a disadvantage of a command economy concerning consumer choice?

• Abundant consumer choice

• Lack of consumer choice

• High quality goods

• Diverse market options

What is an advantage of resource management in a command economy during emergencies?

• Slow resource allocation

• Resources can be re-routed quickly

• High consumer choice

• Limited government control

What is the relationship between a market and a market economy?

• A market is a type of market economy

• A market economy is a type of market

• A market is a place, while a market economy is a system

• They are unrelated

What is another name for a market-based economic system?

• Socialism

• Capitalism

• Communism

• Feudalism

Which of these countries has a market-based economy?

• United States

• North Korea

• Cuba

• Venezuela

Which of the following is NOT a feature of capitalism?

• Individual ownership

• Market prices guide decisions

• Central agency control

• Economic decisions by individuals

Which economic system is characterized by a lack of government interference?

• Command economy

• Market economy

• Mixed economy

• Traditional economy

Which economic system provides many basic education and health services at little or no cost?

• Market economy

• Command economy

• Mixed economy

• Traditional economy