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How Economic Systems Attempt To Allocate Resources Effectively

10 Questions
Economics Quizzes & Trivia

In our economic system we have three main resources that are combined into goods and services. In this quiz we will test the users knowledge of the importance of scarcity of resoures in economics and how effectively the various economic systems attempt to allocate these resources. Knowledge of how different economic systems work will also be tested here.

Questions and Answers
  • 1. 
    In economics we have three main resources that are combined into goods and services, these are;
    • A. 

      Workers, employees, managers

    • B. 

      Equipment, vehicles, furniture

    • C. 

      Human, natural,capital

    • D. 

      Computers,workers,equipment

  • 2. 
    The Koyoto agreement which was discussed in 1997 and ratified in 2001 and 2004, is a legally binding agreement between signed up countries to meet emmisions reduction targets of all greenhouse gases by 2012 relative to 1990 levels.This would explain why scarcity of resources is important to our business enviroment. Which resource below is threatening our present day exisitence.
    • A. 

      Chewing gum

    • B. 

      Petrol and oil

    • C. 

      Gas and coal

    • D. 

      Rain forest in the Amazon

  • 3. 
    There are two main types of ecomonmies, can you name them?
    • A. 

      Demand economy and supply economy

    • B. 

      Free trade and command economy

    • C. 

      Command and free market economy

    • D. 

      Demanding and free economy

  • 4. 
    A totally  free market is rather hard to achieve, with most governments interfering with the economic structure, what do we call this type of economy, where governments control some of the economy.
    • A. 

      Communism

    • B. 

      Free market economy

    • C. 

      Latent economy

    • D. 

      Mixed economy

  • 5. 
    How can a demand economy be a good idea?
    • A. 

      In a world of limited resources, it protects and make a fair and efficient use of these resources.

    • B. 

      It gives wealth to the rich and protects the poor

    • C. 

      Competition provides the market with competitive prices of goods and services

    • D. 

      People are motivated and utilizes resources efficiently

  • 6. 
    Mixed economy generally has a large public sector, examples of these are;
    • A. 

      NHS, DVLA, local council,local housing associations

    • B. 

      Virgin trains,BT,and National express

    • C. 

      Manufacturing, hospitality, service industry

    • D. 

      IT,Shipping,and Oil exploration

  • 7. 
    Is a public sector in a mixed economy a good thing and why?
    • A. 

      No - In general it does not make effective use of resources, and increases national debt.

    • B. 

      Yes - it gives people of all incomes health care through private companies

    • C. 

      Yes - it provides for a mostly upper class population

    • D. 

      No - it would put more people out of work

  • 8. 
    A mixed economy would try to privatise some sectors of the public sector, like railways, and telecommunications, is this a good idea and why?
    • A. 

      Yes - companies like G4S have provided an excellent service, providing security for the Olympic games

    • B. 

      Yes - A4e is escellent at providing employment services with no corruption

    • C. 

      Yes - in general public sector privatistion can lead to lower prices due to competition, with some exceptions

    • D. 

      Yes - privatization leads to employment

  • 9. 
    What is the main advantage of a market economy?
    • A. 

      It gives people choice, freedom and the ability to make a profit from using resources more efficiently.

    • B. 

      Resources are controlled by the state, allocating them when needed.

    • C. 

      The resources are centrally planned by the authority

    • D. 

      Everybody will benefit in an equal way

  • 10. 
    The primary sector is made up of ;
    • A. 

      Banking

    • B. 

      Government, local council,police

    • C. 

      University,schools,teachers

    • D. 

      Mining, farming, fishing