Economic Systems Quiz

What does an economic system determine?

• How to create new resources

• What to produce, how to produce, and for whom to produce

• How to eliminate scarcity

• How to increase population

Why do mixed economic systems matter?

• They provide less freedom

• They create more scarcity

• They provide more economic and political freedom

• They reduce wealth

What is the significance of economic systems in society?

• They eliminate scarcity

• They determine resource allocation

• They increase natural resources

• They reduce economic freedom

What is the role of Animated Economics as mentioned?

• To provide historical data

• To offer interactive lessons on graphs and tables

• To teach cooking recipes

• To explore ancient civilizations

What is an economic system?

• A way a society uses resources to satisfy people's wants

• A method of producing goods only for export

• A system where only the government makes decisions

• A way to create unlimited resources

What takes precedence over individual desires in a traditional economy?

• The good of the group

• Personal wealth

• Technological innovation

• International relations

Which countries are examples of command economies?

• North Korea and Cuba

• United States and Canada

• France and Germany

• Japan and South Korea

What is a key feature of a market economy?

• Government ownership of resources

• Individual choice and voluntary exchange

• Centralized planning

• Fixed pricing by the government

Who noted that in a market economy, individuals act in their own self-interest?

• Karl Marx

• Adam Smith

• John Maynard Keynes

• Milton Friedman

What is a traditional economy?

• An economy based on customs and traditions

• An economy with advanced technology

• An economy with no rules

• An economy controlled by corporations