Economic Systems Quiz 23 (20 MCQs)

Quiz Instructions

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1. Sometimes consumers buy less of oneproduct because they buy a similarproduct at a lower price. What pattern ofbehavior does this example reflect?

Correct Answer: D) Substitution effect.

2. Which of the following is not a fundamental economic question?

Correct Answer: C) How should the products be distributed?.

3. Allows each member of society to make choices about how to use their resources

Correct Answer: C) Freedom.

4. The income people receive for supplying factors of production, such as land, labor or capital.

Correct Answer: B) Factor Payments.

5. Which of the following would NEVER happen in a TRULY communist society?

Correct Answer: B) Some people will be richer than other people.

6. An economic system in which the means of production is owned by the government and private ownership doesn't exist.

Correct Answer: D) Communism.

7. What is/are the basic question(s) all economic systems try to answer?

Correct Answer: D) All of the above.

8. Choose the correct examples of a primary activity.

Correct Answer: C) Mining, agriculture, fishing.

9. A farmer owns two cows and can sell the milk to any dairy.

Correct Answer: B) Capitalism.

10. In a "pure" communist society, who are the wealthiest and most powerful people?

Correct Answer: D) No One every member of society is supposed to be equal.

11. Consumers make economic decisions

Correct Answer: D) Market economic system.

12. Which of the following is NOT one of the characteristics of a command economy?

Correct Answer: C) It is designed to meet the wants of consumers.

13. Government creates program to retrain workers who have lost their jobs to overseas workers.

Correct Answer: D) Economic Security.

14. In a free market economy, people

Correct Answer: A) Can choose what to buy and sell.

15. Waiting in line to get the limited amount of items available.

Correct Answer: A) 1st Come-1st Serve.

16. This economic system has a notable lack of government interference.

Correct Answer: C) Market.

17. What are two types of products in any economy?

Correct Answer: B) Goods & services.

18. Who or what answers the basic economic questions in a command economy?

Correct Answer: B) Government.

19. Who owns the resources in a command economy?

Correct Answer: A) The government.

20. In a traditional economic system, the question of what to produce is answered by producing:

Correct Answer: D) What has always been produced.