Economic Systems Quiz 16 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. The government exercises the MOST control in which economic system?

Correct Answer: C) Communism.

2. What kind of economic system does U.S have?

Correct Answer: B) Mixed.

3. Think Money!

Correct Answer: C) Economy.

4. Under which economic system does the government make almost all of the economic decisions?

Correct Answer: A) Command.

5. The four types of economic systems are:

Correct Answer: A) Traditional, Command, Mixed, & Market.

6. Economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services.

Correct Answer: B) Traditional Economy.

7. What is competition?

Correct Answer: A) A rivalry between companies selling similar items.

8. The government decides how products will be made

Correct Answer: B) Command.

9. An expectation that encourages people to behave in a certain way.

Correct Answer: B) Incentive.

10. In my country, the government controls the economy. It assigns jobs, sets production goals, and decides wages.

Correct Answer: B) Command.

11. Where did Karl Marx predict a revolution of the proletariat would occur first?

Correct Answer: A) Industrial Europe.

12. What is the quality of life based on the possession of the necessities and luxuries that make life easier called?

Correct Answer: C) Standard of living.

13. An economy mostly consisting of subsistence agriculture.

Correct Answer: D) Traditional.

14. The most common medium of exchange in modern economic systems is:

Correct Answer: D) Money.

15. What type of economy is most susceptible to natural disasters?

Correct Answer: D) Traditional.

16. A situation that occurs when two or more businesses try to sell the same type of product to the same customers is referred to as .....

Correct Answer: A) Competition.

17. Which of the following types of economic systems adopts the fewest new ideas or improvements?

Correct Answer: D) Traditional.

18. Which of these signals and incentives doshortages provide?

Correct Answer: B) It is a good time for producers toraise prices.

19. Government sets production quotas

Correct Answer: B) Command economic system.

20. What would result if everyone became self-sufficient?

Correct Answer: D) There would be no need for markets to purchase goods and services.