- 1. Private ownership of property and resources is a characteristic of what type of economic system?
A) Traditional
B) Socialist
C) Free Market
D) Command
- 2. Government ownership of resources is a characteristic in what economic system?
A) Free Market
B) Traditional
C) Command
D) Mixed
- 3. All of the following are characteristics of a command economy EXCEPT
A) competition
B) no consumer choice
C) centrally planned
D) government ownership of resources
- 4. The government controls the means of production in what economic system?
A) Free Market
B) Command
C) Mixed
D) Traditional
- 5. Who makes decisions for the public sector?
A) Government
B) Individuals and government
C) Individuals and business
D) Individuals
- 6. Who keeps the profits in a command economy?
A) Business
B) Government
C) Consumers
D) Individuals
- 7. What type of economic system does the United States and most of the world have ?
A) Traditional
B) Mixed
C) Free Market
D) Command
- 8. John owns a shoe store. At the end of each month, John gets to decide what he wants to do with his profits. What type of economic system does John live under?
A) Command
B) Traditional
C) Barter
D) Free Market
- 9. Mary runs a car dealership. She is required to sell only government built cars. At the end of each month she must give all the money the dealership earns to the government. The government then decides how much Mary Ann and her workers should get. What type of economic system does Mary Ann live under?
A) Free Market
B) Mixed
C) Command
D) Traditional
- 10. Which economy does the following describe: All property and resources are individually owned.
A) Mixed Economy
B) Traditional economy
C) Free−Market Economy
D) Command economy
- 11. Which economy does the following describe: Government makes decisions for the public sector
A) Mixed Economy
B) Traditional Economy
C) Free− Market Economy
D) Command economy
- 12. Which economy guarantees the freedom to own private property and the freedom to earn a profit ?
A) Command economy
B) Mixed Economy
C) Traditional Economy
D) Free− Market Economy
- 13. Which economy does the following describe: Centrally controlled markets with no
A) Command Economy
B) Mixed Economy
C) Market Economy
D) Traditional Economy
- 14. In the U.S. economic system, who makes decisions?
A) Government only
B) Business only
C) Individuals only
D) Individuals, business, and government
- 15. All of the following are characteristics of the U.S. economy EXCEPT
A) consumer Sovereignty
B) private Property
C) free Markets
D) no competition
- 16. The ability of business and individuals to own the means of production represents what aspect of the U.S. economy?
A) Private Property
B) Free Markets
C) Consumer Sovereignty
D) Competition
- 17. In the U.S. economy business owners are allowed to keep all earnings they make after all expenses have been paid. What are these earnings called?
A) Price
B) Consumer Sovereignty
C) Profit
D) Market Price
- 18. What is the main role of the consumer in the U.S. economy?
A) To operate the economy without undue influence
B) To buy all goods at any price
C) To determine through their purchases what will be produced
D) To make products for themselves
- 19. What guarantees ownership of private property ?
A) Competition
B) contracts
C) Private Property receipts
D) Consumer Sovereignty
- 20. Which characteristic of the US economy is being described: Rivalry between producers/sellers of a good or service or service results in better quality goods at a lower price (Pizza Hut and Dominos don't sell a pizza over $10.00)
A) Private Property
B) Competition
C) Consumer Sovereignty
D) Free Market
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