Title: Economic Systems
Course: Demo 1

Q: In a ________ economy, economic goals and the way that these goals are achieved are determined by the government or the leader (ruler).
- market
- traditional
- command
A: command

Q: Which type of economy is most likely to have fewer regulations and interference from the government?
- mixed market economy
- socialist economy
- market economy
A: market economy

Q: When an economic system is characterized by an emphasis on entrepreneurship and free enterprise, we would classify it as a ________ as opposed to a ________, where the government makes the majority of the decisions regarding economic goals.
- high-income : low-income
- regulated : lack of regulation
- market-oriented : command economy
A: market-oriented : command economy

Q: An economy has remained the same for many years and it is not unusual to see families stay in the same occupation for generations. This is most likely a ________ economy.
- socialist
- command
- traditional
A: traditional

Q: Command economies are characterized by a high degree of government control. Which of the following are examples of communist command economies?
- France and Cuba
- France and Canada
- North Korea and Cuba
A: North Korea and Cuba

Q: Anita lives in a country where the government makes all decisions about what goods and services are produced, how to produce them, and what prices can be charged for them. The government also determines how much to pay workers. What type of economic system is this?
- socialism
- market economy
- communism
A: communism

Q: Under which type of economic system do workers typically work fewer hours and have access to more social benefits provided by the government, such as healthcare, education and childcare?
- communism
- market economy
- socialism
A: socialism

Q: Which economic systems allow at least some businesses to be owned privately and operated for the purpose of making a profit for their owners?
- socialism
- market economy
- communism
A: socialism; market economy

Q: Economic decision making in a market economy is decentralized, meaning:
- market demand, rather than the government, determines the types of goods and services produced.
- businesses are owned and operated by private individuals or groups rather than by the government.
- where people devote their livelihoods is determined largely by the government.
A: market demand, rather than the government, determines the types of goods and services produced.; businesses are owned and operated by private individuals or groups rather than by the government.

Q: Tax rates are usually higher than “average” in ________ economies, to pay for the cost of generous social services provided by the government such as education, child care, health care, unemployment benefits, and pensions.
- traditional
- market
- socialist
A: socialist

Q: In a ________, resources are allocated by a combination of markets and the government.
- communist economy
- traditional economy
- mixed market economy
A: mixed market economy

Q: Government regulation:
- may lead to underground economies in which transactions happen without government approval.
- is often used to enforce fair practices within an economy.
- determines the rules for how an economy functions.
A: may lead to underground economies in which transactions happen without government approval.; is often used to enforce fair practices within an economy.; determines the rules for how an economy functions.