Test Your Knowledge About Types Of Capitalism! Quiz

Reviewed by Editorial Team

The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.

Learn about Our Editorial Process

| By Gregorynaomi

Gregorynaomi

Community Contributor

Quizzes Created: 1462 | Total Attempts: 868,951

| Attempts: 231

Questions

Feedback

During the Quiz End of Quiz

Difficulty

Easy First Hard First Sequential

Share on Facebook Share on Twitter Share on Whatsapp Share on Pinterest Share on Email Copy to Clipboard Embed on your website

1/10 Questions

When an economy operates without any form of rules, such capitalism type is known as?
- Democratic Capitalism
- Crony Capitalism
- Finance Capitalism
- Laissez-faire Capitalism

About This Quiz

Capitalism is a system of economics where the means of a country’s economy which includes the production, distribution and consumption of commodities are owned by private individuals. This means the economic system is managed by private individuals. How well do you know the concept of capitalism and its types. Try our quiz to find out.

Test Your Knowledge About Types Of Capitalism! Quiz - Quiz

2.

What is the capitalism type where a government still controls the economy?
- Mercantilism
- Social Market economy
- State Capitalism
- Free Market Capitalism
Correct Answer

A. State Capitalism

Explanation

State Capitalism is the correct answer because it refers to an economic system where the government has significant control and ownership over the means of production and the allocation of resources. In this system, the government plays a central role in managing and regulating the economy, often through state-owned enterprises and government intervention in the market. State Capitalism is different from Free Market Capitalism, where the government has minimal interference in the economy, allowing market forces to determine resource allocation.

Rate this question:
3.

What type of Capitalism is based on a democratic polity?
- Democratic Capitalism
- Crony Capitalism
- Finance Capitalism
- Laissez-faire Capitalism
Correct Answer

A. Democratic Capitalism

Explanation

Democratic Capitalism is the correct answer because it refers to an economic system that combines elements of both democracy and capitalism. In this system, the government is elected by the people and operates under democratic principles, while the economy is primarily driven by private ownership and free market principles. This type of capitalism emphasizes individual freedom, competition, and limited government intervention in the economy.

Rate this question:
4.

Which of these capitalism types is used to describe a pursuit of profit?
- Democratic Capitalism
- Crony Capitalism
- Finance Capitalism
- Laissez-faire Capitalism
Correct Answer

A. Finance Capitalism

Explanation

Finance capitalism is a type of capitalism that focuses on the pursuit of profit through financial activities such as banking, investment, and speculation. It emphasizes the role of financial institutions and markets in the economy, where profit is generated through the buying and selling of financial assets and the provision of financial services. This form of capitalism is characterized by a strong influence of financial interests on economic decision-making and the allocation of resources.

Rate this question:
5.

Which of these countries do not practice capitalism?
- UAE
- UK
- Ireland
- China
Correct Answer

A. China

Explanation

China does not practice capitalism. China follows a socialist market economy, which means that while they have elements of a market economy, the government also has significant control over the means of production and economic planning. In China, the government owns and controls many key industries and sectors, and they heavily regulate and intervene in the economy. This is in contrast to countries like UAE, UK, and Ireland, which have predominantly capitalist economies where private individuals and businesses have a significant role in the economy.

Rate this question:

1
6.

When a government still provides necessary social services, what form of capitalism is practised?
- Mercantilism
- Social Market economy
- State Capitalism
- Free Market Capitalism
Correct Answer

A. Social Market economy

Explanation

When a government still provides necessary social services, the form of capitalism that is practiced is a Social Market economy. In this economic system, the government plays a role in regulating and providing social services such as healthcare, education, and welfare, while still allowing for private ownership and market competition. This ensures that the basic needs of the population are met while also promoting economic growth and efficiency through market mechanisms.

Rate this question:
7.

What type of capitalism is depicted in a reliance on authority?
- Free market
- Crony Capitalism
- Entertainment Capitalism
- Finance Capitalism
Correct Answer

A. Crony Capitalism

Explanation

Crony capitalism is the correct answer because it refers to a type of capitalism where businesses form close relationships with government officials or other authorities to gain unfair advantages, such as preferential treatment or subsidies. This reliance on authority is a key characteristic of crony capitalism, as opposed to free market capitalism where businesses operate independently with minimal government intervention. Entertainment capitalism and finance capitalism do not specifically involve a reliance on authority, making them incorrect options.

Rate this question:
8.

Which of these is the earliest form of capitalism?
- Mercantilism
- Social Market economy
- State Capitalism
- Free Market Capitalism
Correct Answer

A. Mercantilism

Explanation

Mercantilism is considered the earliest form of capitalism because it emerged in Europe during the 16th to 18th centuries. It was characterized by government control and regulation of trade and industry, with a focus on accumulating wealth through exports and a favorable balance of trade. Mercantilism emphasized protectionism and the acquisition of colonies as a means to secure resources and markets for the home country. This economic system laid the foundation for the development of later capitalist systems, such as free market capitalism.

Rate this question:
9.

What type of capitalism is used to describe an heavy reliance on civil servants?
- Democratic Capitalism
- Crony Capitalism
- Finance Capitalism
- Laissez-faire Capitalism
Correct Answer

A. Crony Capitalism

Explanation

Crony capitalism is the correct answer because it refers to a type of capitalism where there is a heavy reliance on civil servants. In this system, government officials and business leaders collude to benefit each other, often through corrupt practices such as bribery and nepotism. This leads to a close relationship between the government and certain favored businesses, resulting in unfair advantages and the concentration of wealth and power in the hands of a few.

Rate this question:
10.

What form of capitalism mixes with imperialism?
- Mercantilism
- Social Market economy
- State Capitalism
- State Capitalism Free Market Capitalism
Correct Answer

A. Mercantilism

Explanation

Mercantilism is the correct answer because it is an economic system that combines elements of capitalism and imperialism. In mercantilism, the government plays a significant role in controlling and regulating trade to accumulate wealth and power. This system promotes the idea of a strong nation-state and emphasizes the accumulation of gold and silver through exports and the establishment of colonies. Therefore, mercantilism can be seen as a form of capitalism that is intertwined with imperialism.

Rate this question: