Trivia On Economic System: Quiz!

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Erinst

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1/10 Questions

Which of these is a key economic question face by countries?
- How bis should the army be?
- What goods and services should be produced?
- How much mone should be raised in taxes?
- How many schools should be built?

About This Quiz

Do you know anything about the economic system? Would you be willing to try this quiz? Some of the ideas in this quiz that you should learn about including financial decisions based on what markets allow us to do, how competition and self-interest are essential, and what a centrally planned economy is. This quiz will feature these areas concerning the See moreeconomic system. Could you give it a go?

2.

In a traditional economy, economic decisions are based largely on
- Custom
- Science
- Socialism
- Technology
Correct Answer

A. Custom

Explanation

In a traditional economy, economic decisions are based largely on custom. This means that the economic activities and practices are determined by long-standing traditions, cultural beliefs, and customs that have been passed down through generations. These customs dictate how resources are allocated, production methods, and distribution of goods and services. Custom plays a significant role in shaping the economic system of a traditional economy, as it provides stability and continuity to the community by following established norms and practices.

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3.

Markets allow us to
- Get the highest prices for what we sell
- Get the lowest prices for what we buy
- Sell the most goods we possibly can
- Exchange hte things we have for the things we need
Correct Answer

A. Exchange hte things we have for the things we need

Explanation

Markets allow individuals to exchange the things they have for the things they need. This means that people can trade their goods or services for other goods or services that they require. In a market, individuals can engage in transactions and negotiate prices to ensure that they obtain the items they need in exchange for the items they possess. This exchange system facilitates the fulfillment of people's needs and promotes economic activity.

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4.

Competition and self-interest are two important forces in?
- Free market economies
- Traditional economies
- Centrally planned economies
- Communist economies
Correct Answer

A. Free market economies

Explanation

Competition and self-interest are two important forces in free market economies. In a free market, individuals and businesses are motivated by self-interest to pursue their own goals and maximize their profits. This leads to competition among market participants, as they strive to offer better products and services at lower prices to attract customers. This competition drives innovation, efficiency, and economic growth. In contrast, traditional, centrally planned, and communist economies typically have less competition and rely more on government control and regulation, which can limit individual incentives and hinder economic progress.

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5.

Which economic goals are best promoted by the free market?
- Efficiency and freedom
- Efficiency and equity
- Innovation and security
- Freedom and security
Correct Answer

A. Efficiency and freedom

Explanation

The free market promotes efficiency by allowing competition and market forces to determine prices and allocate resources. It encourages businesses to be efficient in order to stay competitive and meet consumer demands. Additionally, the free market promotes freedom by allowing individuals to make choices about what to buy and sell, and how to allocate their resources. It allows for entrepreneurship and innovation, as individuals are free to start businesses and pursue their own economic interests.

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6.

Which is true of the government in a centrally planned economy?
- It builds every house in every village.
- It encourages workers to innovate
- It makes all important economic desisions
- It places much emphasis on the production of consumer goods
Correct Answer

A. It makes all important economic desisions

Explanation

In a centrally planned economy, the government has control over all important economic decisions. This means that the government determines what goods and services will be produced, how they will be produced, and who will receive them. The government also decides on resource allocation, investment, and distribution of income. This centralized decision-making allows the government to have a significant influence on the economy and ensures that economic activities align with the overall goals and priorities set by the government.

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7.

Socialists believe that economic equality is only possible if
- Everyone makes the same amount of money.
- The public controls the economy
- Medical care is free
- No one has to pay taxes
Correct Answer

A. The public controls the economy

Explanation

Socialists believe that economic equality is only possible if the public controls the economy. This means that the government or the community as a whole should have control over the means of production, distribution, and exchange of goods and services. By having public control, socialists aim to ensure that resources are allocated in a way that benefits everyone and reduces economic disparities. This approach allows for greater regulation and redistribution of wealth, which is seen as essential for achieving economic equality.

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8.

The former Soviet Union was an example of a communist country where:
- Individual freedom was allowed
- Free enterprise was encouraged
- Consumers had many choices
- Most economic and political power was controlled by the government
Correct Answer

A. Most economic and political power was controlled by the government

Explanation

The former Soviet Union was a communist country where most economic and political power was controlled by the government. This means that the government had significant control over the economy, including the means of production and distribution of goods and services. Additionally, the government also held authority over political decisions and policies, limiting individual freedoms and choices. The absence of free enterprise and the limited choices available to consumers further exemplify the government's control over the economy and society as a whole.

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9.

Which of the following countries has the most extreme example of a centrally planned economy?
- North Korea
- Hong Kong
- China
- Great Britain
Correct Answer

A. North Korea

Explanation

North Korea is the correct answer because it is known for having the most extreme example of a centrally planned economy. The country's economy is highly controlled by the government, with limited market mechanisms and a heavy emphasis on state ownership and control of resources. The government determines production levels, sets prices, and allocates resources according to its own priorities. This centralized planning has resulted in a highly regulated and isolated economy, with limited foreign trade and a heavy reliance on government subsidies.

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10.

The free enterprise system of the United States is best described as a?
- Free market economy
- Traditional economy
- Mixed economy with limited government intervention and a great deal of economic freedom
- Mixed economy with equal amounts of economic freedom and government intervention
Correct Answer

A. Mixed economy with limited government intervention and a great deal of economic freedom

Explanation

The correct answer is "mixed economy with limited government intervention and a great deal of economic freedom." This is because the free enterprise system in the United States combines elements of both a market economy and government intervention. While there is a significant amount of economic freedom for individuals and businesses to engage in voluntary transactions, the government also plays a role in regulating certain aspects of the economy and providing public goods and services. However, the level of government intervention is limited compared to a command or socialist economy, allowing for a greater degree of economic freedom.

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Mar 21, 2023

Quiz Edited by
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Dec 01, 2010

Quiz Created by
Erinst

Trivia On Economic System: Quiz!

Which of these is a key economic question face by countries?

Quiz Preview

In a traditional economy, economic decisions are based largely on

Markets allow us to

Competition and self-interest are two important forces in?

Which economic goals are best promoted by the free market?

Which is true of the government in a centrally planned economy?

Socialists believe that economic equality is only possible if

The former Soviet Union was an example of a communist country where:

Which of the following countries has the most extreme example of a centrally planned economy?

The free enterprise system of the United States is best described as a?