This quiz works best with JavaScript enabled. Home > Systems > Types > Economic Systems – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Systems Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In this economic system, a central authority makes plans regarding investment and production: A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: B) Command. 2. In this economic system, previous generations and traditions determine what and how things are produced. A) Markey. B) Mixed. C) Command. D) Traditional. Show Answer Correct Answer: D) Traditional. 3. In which type of economic system do business owners control the factors of production? A) Free Enterprise. B) Communist. C) Socialist. D) None of above. Show Answer Correct Answer: A) Free Enterprise. 4. What is the law of supply and demand? A) One person supplies and the other demands. B) When consumers want higher prices but producers want lower prices. C) Every action has an equal opposite reaction. D) When consumers want lower prices but producers want higher prices. Show Answer Correct Answer: D) When consumers want lower prices but producers want higher prices. 5. Government controls or dictates what is produced in this economic system A) Traditional Economy. B) Free Enterprise. C) Command Economy. D) Mixed Economy. Show Answer Correct Answer: C) Command Economy. 6. If my government is selling me bread for $ 5 a loaf, and I have no choice but to buy that type of bread, I live in a ..... economy. A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: B) Command. 7. Who or what answers the basic economic questions in a free market economy? A) Individuals and Businesses. B) Government. C) Custom. D) Individuals, Businesses, and Government. Show Answer Correct Answer: A) Individuals and Businesses. 8. Capitalism is most closely related to which type of economic system? A) Command. B) Traditional. C) Free Enterprise. D) Mixed. Show Answer Correct Answer: C) Free Enterprise. 9. Sarah would like to become a doctor when she grows up. Unfortunately, she lives in a country where her job will be decided for her by the government. A) Traditional. B) Free Market. C) Mixed. D) Command. Show Answer Correct Answer: D) Command. 10. Government in which one person or a small group of people rule the country by force A) Traditional economy. B) Communism. C) Deomocracy. D) Dictatorship. Show Answer Correct Answer: D) Dictatorship. 11. In a command economic system, who makes decisions on cost and ownership? A) The government. B) The community. C) Buyers and sellers. D) None of the above. Show Answer Correct Answer: A) The government. 12. Free copetition A) Traditional economic system. B) Command economic system. C) Mixed economic system. D) Market economic system. Show Answer Correct Answer: D) Market economic system. 13. In a market economy, who has the least influence over how economic resources are allocated? A) The government. B) Consumers. C) Businesses/Producers. D) None of the above. Show Answer Correct Answer: A) The government. 14. The phrase "profit is the incentive for business" means that profit ..... A) Provides a strong reason to reduce investment. B) Reduces the need for efficient use of resources. C) Provides a reward for the risk and effort involved. D) Provides the incentive to increase expenses. Show Answer Correct Answer: C) Provides a reward for the risk and effort involved. 15. What type of economic system is used in the United States? A) Market. B) Socialist Command. C) Traditional. D) Communist Command. Show Answer Correct Answer: A) Market. 16. Which of the following is not a characteristic of a market economy? A) Profit is the motivation for most businesses. B) Supply and demand dictate price and production. C) Competition between businesses is discouraged. D) None of above. Show Answer Correct Answer: C) Competition between businesses is discouraged. 17. In this type of economic system, government planners make all economic decisions A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: B) Command. 18. Which economic system promotes competition? A) Communism. B) Capitalism. C) Socialism. D) None of above. Show Answer Correct Answer: B) Capitalism. 19. Individuals and businesses own the means of production A) Traditional economic system. B) Command economic system. C) Mixed economic system. D) Market economic system. Show Answer Correct Answer: D) Market economic system. 20. Economic system based on traditions and social customs A) Economic system. B) Traditional. C) Supply and demand. D) Market. Show Answer Correct Answer: B) Traditional. ← PreviousNext →Related QuizzesSystems QuizzesEconomic Systems Quiz 1Economic 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