Economic Systems Test

Name

The three basic economic questions are

• What should be produced? How should it be produced? Who gets to consume it?
• How should it be produced? Who produces it? Where is it produced?
• Why should be it be produced? Who produces it? Who gets to consume it?
• Why should it be produced? How should it be produced? Where is it produced?

What is the function of an economic system?

• To makes sure all people have equal access to goods
• To organize a society's production and distribution of resources.
• To give all producers the same access to consumers
• To make sure people are paid for their labor

When customs dictate the economy, it is a

• traditional economy.
• command economy.
• market economy.
• mixed economy.

When the government dictates the economy, it is a

• traditional economy.
• command economy.
• market economy.
• mixed economy.

When individuals dictate the economy, it is a

• traditional economy.
• command economy.
• market economy.
• mixed economy.

When individuals and the government dictate the economy, it is a

• traditional economy.
• command economy.
• market economy.
• mixed economy.

The main incentive for people to actively compete in a market economy is

• to promote the good of the people.
• to promote the good of the state.
• to make the world a better place.
• the profit motive.

In which system is the role of government to robustly regulate the market?

• mixed
• traditional
• market
• command

In mixed economies, the factors of production are owned

• publicly.
• privately.
• publicly and privately.
• communally.