Economic Systems Quiz 2 (20 MCQs)

Quiz Instructions

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1. Which is the major feature of an economy based on subsistence farming?

Correct Answer: C) Farmers raise just enough crops for their family to survive.

2. The government controls the factors of production in which type of economic system

Correct Answer: A) Command.

3. Which of the following is a characteristic of a command economy?

Correct Answer: A) Consumers have few, if any, choices in the market place.

4. Which of the following is NOT one of the 3 key economic questions:

Correct Answer: C) Is a hot dog a sandwich?.

5. Interdependence means

Correct Answer: C) Two countries economies rely on each other.

6. The money flowing out of an economy is called

Correct Answer: A) Leakages.

7. Which Economy has total control

Correct Answer: A) Command.

8. This studies how individuals and societies seek to satisfy want & needs through incentives, choices and allocation of resources.

Correct Answer: B) Economics.

9. How many major economic questions are there?

Correct Answer: C) 3.

10. A farmer is assigned two cows and a share of grazing land. All milk is sent to a government-owned dairy.

Correct Answer: A) Communism.

11. Which type of economy is run by the businesses & business owners?

Correct Answer: D) Market.

12. Which of the countries below uses a Socialist Economy?

Correct Answer: C) France.

13. An economy that combines elements of command and market economy is

Correct Answer: D) Mixed economy.

14. Turkey, like most countries, has much economic freedom with some government involvement. Which term describes this economic system?

Correct Answer: B) Mixed.

15. Which of the following best describes the Laissez-Faire approach to the economy?

Correct Answer: A) Hands Off (leave it alone).

16. The United States is an example of a country that has a .....

Correct Answer: D) Mixed Economy.

17. Farmers and hunters pass down their skills to a younger generation in which economy?

Correct Answer: B) Traditional.

18. Government planning groups make the basic economic decisions.

Correct Answer: B) Command.

19. Businesses can produce goods how they think the consumers will want them

Correct Answer: D) Market.

20. The definition of Economics is the

Correct Answer: C) Study of how resources are used to satisfy unlimited wants and needs.