Economic Systems and Globalization Quiz

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

• Free Enterprise

• Socialism

• Communism

• Barter System

__________________________ 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

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

Which of the following is NOT one of the three economic questions?

• What goods will be produced?

• How will the goods be produced?

• How much will be produced?

• For whom will the goods be produced?

The major differences between free enterprise and socialism include

• Ownership of resources and the government’s role in the economy

• Economic planning and income distribution

• Controlling prices and honoring private property

• All of the above

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

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

Globalization has

• Expanded everyone’s ability to potentially sell to more people

• Reduce the variety of products available in the world

• Raised prices for consumers

• Decreased people’s ability to communicate