Economic Systems Quiz

What is the main objective of a capitalist economy?

• Social welfare

• Profit maximization

• Equal distribution of wealth

• Government ownership

In a socialist economy, who owns the means of production?

• Private individuals

• Foreign investors

• Government

• Joint ventures

Which of the following countries is often cited as a capitalist economy?

• Cuba

• North Korea

• United States

• China

A mixed economy combines elements of:

• Capitalism and Communism

• Feudalism and Capitalism

• Capitalism and Socialism

• None of the above

In a capitalist system, prices are determined by:

• Government

• Central planning

• Market forces

• Labor unions

Which of the following is not a feature of capitalism?

• Private ownership

• Profit motive

• Central planning

• Competition

Which country has a largely socialist economy?

• United States

• China (pre-1978)

• Japan

• South Korea

What role does the government play in a capitalist economy?

• Full control of production

• Allocates all resources

• Acts as a regulator

• None at all

The concept of 'welfare state' is commonly associated with:

• Capitalist economy

• Socialist economy

• Mixed economy

• Traditional economy

Which of the following best describes a mixed economy?

• Government controls all business

• No private property

• Private and public sectors coexist

• Only profit motive rules