This quiz works best with JavaScript enabled. Home > Economics > Systems > Types > Economic Systems – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Systems Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The initiative to improve goods & services or create new ones is ..... A) Capital resources. B) Entrepreneurial resources. C) Economics. D) Human resources. Show Answer Correct Answer: B) Entrepreneurial resources. 2. Which of the following BEST describes a mixed economy? A) An economy that does not exist. B) An economy that does not overlap with other economic structures. C) An economy that overlaps with other economic structures. D) An economy that follows traditional customs. Show Answer Correct Answer: C) An economy that overlaps with other economic structures. 3. Which basic economic question determines how a society will produce goods and services? A) How can available resources be used efficiently?. B) What goods and services are produced?. C) What price should goods and services be sold at?. D) None of above. Show Answer Correct Answer: A) How can available resources be used efficiently?. 4. Many, but not all, businesses are owned & controlled by the governmentIndividuals can own businesses, but the government controls most social services A) Mixed. B) Command. C) Market. D) Communist. Show Answer Correct Answer: A) Mixed. 5. One of the reasons that a country needs an economic system is because it: A) Is independent of other nations. B) Has limited wants and needs. C) Has a limited supply of resources. D) Has immigrants from several countries. Show Answer Correct Answer: C) Has a limited supply of resources. 6. An arrangement that allows buyers and sellers to exchange things. A) Market. B) Free Enterprise. C) Frim. D) Consumer Sovereignty. Show Answer Correct Answer: A) Market. 7. Something that encourages a person to take a certain action. A) Entrepreneur. B) Tax. C) Incentive. D) Specialization. Show Answer Correct Answer: C) Incentive. 8. What word best describes the advantage of the command economy? A) Entrepreneurship. B) Profit. C) Ownership. D) Equity. Show Answer Correct Answer: D) Equity. 9. All of the following are weaknesses of a command economy EXCEPT that it A) Can change direction drastically in a short time. B) Lacks the flexibility to deal with minor problems. C) Requires a large decision-making bureaucracy. D) Provides few incentives for people to work hard. Show Answer Correct Answer: A) Can change direction drastically in a short time. 10. The sacrifice that is made when a person chooses between two goods or services. A) Economics. B) Productivity. C) Profit. D) Opportunity Costs. Show Answer Correct Answer: D) Opportunity Costs. 11. The goods produced will be the same, generation after generation A) Mixed. B) Market. C) Command. D) Traditional. Show Answer Correct Answer: D) Traditional. 12. Which trade barrier sets up a complete ban on trading between countries? A) Tariff. B) Mountain. C) Quota. D) Embargo. Show Answer Correct Answer: D) Embargo. 13. Business owners have complete control over what they want to produce, how they want to produce it, and who they want to sell it to in this economic system. A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: C) Market. 14. Laissez-faire refers to A) A great deal of government intervention in the economy. B) Supporting the broad social goal of equity. C) Supporting the broad social goal of security. D) Very little government intervention in the economy. Show Answer Correct Answer: D) Very little government intervention in the economy. 15. When people want or need more of something than there is. A) Profit. B) Scarcity. C) Tax. D) Opportunity Cost. Show Answer Correct Answer: B) Scarcity. 16. Bring goods into the country A) Export. B) Production. C) Import. D) Distribution. Show Answer Correct Answer: C) Import. 17. Things that are needed to produce goods and services are called ..... A) Efficient use of resources. B) Factors of production / resources. C) Economic systems. D) Private property. Show Answer Correct Answer: B) Factors of production / resources. 18. Producers and consumers determine how to use resources and make goods based on supply and demand in the market, without government interference. A) Market Economy. B) Traditional Economy. C) Command Economy. D) Mixed Economy. Show Answer Correct Answer: A) Market Economy. 19. What are the three economic questions that every country's economy must answer? A) How to produce, when to produce, and why to produce?. B) What to produce, how to produce, and for whom to produce?. C) What is the price, what is the cost, and what is the opportunity cost?. D) None of above. Show Answer Correct Answer: B) What to produce, how to produce, and for whom to produce?. 20. An essential characteristic of a communist economy is the- A) Interaction of supply and demand. B) Organization of worker unions. C) Privatization of business. D) Government ownership of property. Show Answer Correct Answer: D) Government ownership of property. 21. Which is the major feature of an economy based on subsistence farming? A) Most adults work outside the home. B) Farmers raise just enough crops for their family to survive. C) Farmers compete with each other. D) The government decides which crops should be grown. Show Answer Correct Answer: B) Farmers raise just enough crops for their family to survive. 22. The government controls the factors of production in which type of economic system A) Command. B) Mixed. C) Market. D) Traditional. Show Answer Correct Answer: A) Command. 23. Which of the following is a characteristic of a command economy? A) Consumers have few, if any, choices in the market place. B) Little government intervention. C) Also, called "capitalist" economy. D) Resources are owned by individuals. Show Answer Correct Answer: A) Consumers have few, if any, choices in the market place. 24. Which of the following is NOT one of the 3 key economic questions: A) Who consumes it?. B) How do we produce it?. C) Is a hot dog a sandwich?. D) What do we produce?. Show Answer Correct Answer: C) Is a hot dog a sandwich?. 25. Interdependence means A) Two countries depend on another country. B) Taxes are higher. C) Two countries economies rely on each other. D) One country depends on another. Show Answer Correct Answer: C) Two countries economies rely on each other. 26. The money flowing out of an economy is called A) A bad thing. B) Leakages. C) Exports. D) Injections. Show Answer Correct Answer: B) Leakages. 27. Which Economy has total control A) Command. B) Traditional. C) Mixed. D) Market. Show Answer Correct Answer: A) Command. 28. This studies how individuals and societies seek to satisfy want & needs through incentives, choices and allocation of resources. A) Scarcity. B) Natural resources. C) Economics. D) Capital resources. Show Answer Correct Answer: C) Economics. 29. How many major economic questions are there? A) 4. B) 1. C) 3. D) 2. Show Answer Correct Answer: C) 3. 30. A farmer is assigned two cows and a share of grazing land. All milk is sent to a government-owned dairy. A) Communism. B) Capitalism. C) Socialism. D) None of above. Show Answer Correct Answer: A) Communism. Next →Related QuizzesSystems QuizzesEconomics QuizzesEconomic Systems Quiz 2Economic Systems Quiz 3Economic Systems Quiz 4Economic Systems Quiz 5Economic Systems Quiz 6Economic Systems Quiz 7Economic Systems Quiz 8Economic Systems Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books