Economic System

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  1. Which of the following is 
    not a role of government in a mixed economy?

2 points  

QUESTION 2

  1. In centrally-planned economies, the needs and wants of consumers are often ignored.

2 points  

QUESTION 3

  1. In a command economy, workers decide where they will work.

2 points  

QUESTION 4

  1. Fossil fuels are a limited resource.

2 points  

QUESTION 5

  1. In a free market, consumers make their own economic choices.

2 points  

QUESTION 6

  1. Economists who believe in 
    laissez faire think that the economy will be unable to take care of the needs of consumers if it is allowed to run on its own.

2 points  

QUESTION 7

  1. A centrally- planned economy is also known as…

2 points  

QUESTION 8

  1. In a command economy the government controls the economic system and answers the three economic questions.  

2 points  

QUESTION 9

  1. Which of the following political philosophies is followed by governments using command economies?

2 points  

QUESTION 10

  1. The United States government plays a limited role in its economy.

2 points  

QUESTION 11

  1. Freedom is an important economic goal in command economies.

2 points  

QUESTION 12

  1. The standard of living is low in traditional economies.

2 points  

QUESTION 13

  1. Farming is a primary economic activity of traditional economies.

2 points  

QUESTION 14

  1. A mixed economy combines practices of both traditional and command economies.

2 points  

QUESTION 15

  1. The government collects taxes from companies in the circular flow diagram.

2 points  

QUESTION 16

  1. In mixed economies, the government collects taxes to fund programs that help society.

2 points  

QUESTION 17

  1. Most economists that promote free market economies 
    strongly support government involvement in the economy.

2 points  

QUESTION 18

  1. Socialism is based on the idea that democracy should be used to ensure that wealth is dispersed fairly in a society.

2 points  

QUESTION 19

  1. Inflation influences the inner workings of a free-market.

2 points  

QUESTION 20

  1. In a command economy, the government controls the land, labor, and capital.

2 points  

QUESTION 21

  1. Which of the following is a role of government in a mixed economy?

2 points  

QUESTION 22

  1. In a command economy, the government does not decide where a person works.

2 points  

QUESTION 23

  1. A newly created product is an example of economic innovation.

2 points  

QUESTION 24

  1. Which of the following political philosophies is followed by governments using centrally-planned economies?

2 points  

QUESTION 25

  1. In a free market economy, only a small amount of products are provided to meet the demands of consumers.

2 points  

QUESTION 26

  1. Producers take money to a market and use it to purchase what they need and want.

2 points  

QUESTION 27

  1. Equity is an important economic goal in command economies.

2 points  

QUESTION 28

  1. Economist Adam Smith understood the need for some government __________.  

2 points  

QUESTION 29

  1. In centrally-planned economies, consumers do not have access to a variety of consumer goods.

2 points  

QUESTION 30

  1. Efficiency is not an important economic goal in command economies.

2 points  

QUESTION 31

  1. Importing goods prevents countries from interacting.

2 points  

QUESTION 32

  1. In centrally-planned economies, consumers have economic freedom and make many economic choices.

2 points  

QUESTION 33

  1. Which of the following factors does not influence the inner workings of a free-market?

2 points  

QUESTION 34

  1. Producers in a free market should continually strive to meet the demands of consumers.

2 points  

QUESTION 35

  1. In centrally-planned economies, there are enough consumer goods.

2 points  

QUESTION 36

  1. During tough economic times, the federal government increases spending to encourage growth in the economy.

2 points  

QUESTION 37

  1. Governments in mixed economies support public goods and services by providing equal access to them.

2 points  

QUESTION 38

  1. Which of the following statements applies to a mixed economy?

2 points  

QUESTION 39

  1. Inflation ensures that producers offer goods and services needed by society.

2 points  

QUESTION 40

  1. The term 
    laissez faire means:

2 points  

QUESTION 41

  1. __________allows us to be more efficient and to use our resources effectively by focusing our time, talents, and resources on a few tasks.

2 points  

QUESTION 42

  1. Which of the following is NOT a basic economic goal?

2 points  

QUESTION 43

  1. Availability is an important economic goal in command economies.

2 points  

QUESTION 44

  1. Which of the following is not an advantage of a free market?

2 points  

QUESTION 45

  1. Communism is based on the idea that democracy should be used to ensure that wealth is dispersed fairly in a society.

2 points  

QUESTION 46

  1. Markets are regulated by the “invisible hand.”

2 points  

QUESTION 47

  1. In free market, producers continually strive to meet the demands of consumers.

2 points  

QUESTION 48

  1. There is little incentive to improve the economy in centrally-planned economies.

2 points  

QUESTION 49

  1. In a free market economy, consumers perform a job and earn money.

2 points  

QUESTION 50

  1. _________ encourages countries to interact.