ThatQuiz Test Library Take this test now
Economic Systems Quiz
Contributed by: Anderson
  • 1. All of the following are examples of a traditional economy except -
A) Hunting and gathering
B) Large scale manufacturing
C) Subsistence agriculture
D) The barter system
  • 2. Which activity would be most characteristic of people in a traditional society?
A) Establishing a mercantile system of trade
B) Having the same occupation as their parents
C) Serving in government assemblies
D) Working in an industrialized cities
  • 3. How are major economic decisions made in a command economy?
A) Supply and demand are determined by consumers of foodstuffs
B) Officials of the government control all aspects of economic activity
C) Wholesalers of agricultural goods make most of the decisions
D) Manufacturers of industrial goods control the resources
  • 4. Which of the following lists the economic systems in the correct order they would appear on the economic spectrum?
A) Free Enterprise, Mixed, Command
B) Free Enterprise, Command, Mixed
C) Command, Mixed, Free Enterprise
D) Mixed, Command, Free Enterprise
  • 5. The key principle of the economic theory of communism is –
A) The restoration of a bartering system in developing countries
B) The organization of workers’ unions in industrialized nations
C) The privatization of business and production of goods and services
D) The government ownership, control and regulation of property
  • 6. How can one best describe the economy operating under a free enterprise system?
A) The government sets the prices of products and the quantity of goods
B) Prices change according to changes in the supply and demand for products
C) Prices are fixed by agreements among business leaders and labor unions
D) All industries except smaller businesses are controlled by the government
  • 7. How does a command economy differ from a free market economy?
A) Resources are allocated by government decisions
B) A variety of economic incentives encourage business growth
C) Prices are set by consumers
D) There is a high rate of unemployment
  • 8. What is the function of the government in a command economy?
A) Trade policies mandated that imports exceed exports
B) They allow the laws of supply and demand to control the economy
C) The success of the agricultural sector controls the manufacturer's goods
D) They determine the type and quantity of goods to be produced through Five Year Plans
  • 9. In which economic system would a person expect the widest selection of consumer goods?
A) Free Enterprise
B) Socialist
C) Traditional
D) Communist
  • 10. Which group has the greatest influence in determining what goods and services will be produced in a communist economic system?
A) Farmers
B) Government officials
C) Consumers
D) Bankers
Students who took this test also took :

Created with That Quiz — where test making and test taking are made easy for math and other subject areas.