Economic Systems and Globalization Quiz

The United States runs on capitalism, which can also be called __________________________.

• Free Enterprise

• Socialism

• Communism

• Barter System

A(n) __________________________ is defined by how a society answers the three basic economic questions.

• Economic System

• Political System

• Social Structure

• Cultural Norm

An economic system that is based on customs, skills, and cultural beliefs is called a(n) __________________________ economy.

• Traditional

• Market

• Command

• Mixed

__________________________ wrote The Wealth of Nations and believed that self-interest causes people to work hard and take risks, which benefits society.

• Adam Smith

• John Maynard Keynes

• Karl Marx

• David Ricardo

When individuals, businesses, and governments in any part of the world are affected by events elsewhere in the world, it is called __________________________.

• Globalization

• Isolation

• Nationalization

• Localization

__________________________ refers to any work done for a company by people other than the company’s employees.

• Outsourcing

• Insourcing

• Freelancing

• Consulting

Work done for a company by people who live in other countries is called __________________________.

• Offshoring

• Outsourcing

• Telecommuting

• Freelancing

Resources are owned and controlled by private individuals in what type of economic system?

• Free enterprise or Market economy

• Socialism or Command economy

• Traditional Economy

• Mixed Economy

Income distribution refers to

• The way all of a country’s income is divided among groups of earners

• Average income per person

• Welfare payments to the poor

• Earnings of corporation

In a socialist economic system, the government

• Owns and controls most of the resources

• Owns and controls the people

• Pays little attention to income distribution

• Rents resources to the people