Economic Systems Quiz

1. All of the following are examples of a traditional economy except -

A) Large scale manufacturing
B) Hunting and gathering
C) The barter system
D) Subsistence agriculture

2. Which activity would be most characteristic of people in a traditional society?

A) Having the same occupation as their parents
B) Establishing a mercantile system of trade
C) Working in an industrialized cities
D) Serving in government assemblies

3. How are major economic decisions made in a command economy?

A) Supply and demand are determined by consumers of foodstuffs
B) Manufacturers of industrial goods control the resources
C) Wholesalers of agricultural goods make most of the decisions
D) Officials of the government control all aspects of economic activity

4. Which of the following lists the economic systems in the correct order they would appear on the economic spectrum?

A) Command, Mixed, Free Enterprise
B) Mixed, Command, Free Enterprise
C) Free Enterprise, Mixed, Command
D) Free Enterprise, Command, Mixed

5. The key principle of the economic theory of communism is –

A) The organization of workers’ unions in industrialized nations
B) The government ownership, control and regulation of property
C) The restoration of a bartering system in developing countries
D) The privatization of business and production of goods and services

6. How can one best describe the economy operating under a free enterprise system?

A) Prices are fixed by agreements among business leaders and labor unions
B) The government sets the prices of products and the quantity of goods
C) Prices change according to changes in the supply and demand for products
D) All industries except smaller businesses are controlled by the government

7. How does a command economy differ from a free market economy?

A) Resources are allocated by government decisions
B) There is a high rate of unemployment
C) A variety of economic incentives encourage business growth
D) Prices are set by consumers

8. What is the function of the government in a command economy?

A) The success of the agricultural sector controls the manufacturer's goods
B) They determine the type and quantity of goods to be produced through Five Year Plans
C) They allow the laws of supply and demand to control the economy
D) Trade policies mandated that imports exceed exports

9. In which economic system would a person expect the widest selection of consumer goods?

A) Communist
B) Traditional
C) Free Enterprise
D) Socialist

10. Which group has the greatest influence in determining what goods and services will be produced in a communist economic system?

A) Consumers
B) Government officials
C) Bankers
D) Farmers

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