Economic Systems Quiz

What is an economic system?

• A method for organizing a society's resources

• A type of government

• A financial institution

• A cultural tradition

Why do governments need an economic system?

• To manage scarcity and resource allocation

• To increase population growth

• To promote cultural activities

• To establish political parties

Which three basic economic questions determine the type of economic system?

• What to produce? How to produce? For whom to produce?

• Where to sell? How to market? When to sell?

• Who to hire? What to pay? How to train?

• What to import? How to export? Where to store?

Which of the following is a type of economic system?

• Feudal Economy

• Command Economy

• Industrial Economy

• Digital Economy

What type of economic system combines elements of both market and command economies?

• Traditional Economy

• Mixed Economy

• Market Economy

• Command Economy

What is the concept of capitalism as described by capitalists?

• A system where wealth is distributed equally among all

• A system where individuals trade freely and accumulate wealth

• A system where the government controls all resources

• A system with no rules or regulations

In a traditional economy, how are the questions of what, how, and for whom to produce answered?

• By government regulations

• Based on tradition and customs

• Through market demand

• By technological advancements

Which of the following is a characteristic of a traditional economy?

• Innovation and change are encouraged

• Everyone does what their parents did

• Decisions are made by a central authority

• Production is based on consumer preferences

Which of the following is an example of a traditional economy?

• Silicon Valley tech companies

• Native American tribes

• European Union countries

• Modern urban cities

In a traditional economy, what determines what is produced?

• Market trends

• Customs and ancestors

• Government policies

• International trade agreements