L
Lindsey
Guest
1. Which kind of economic system does a capitalist country have?
Command
Free-market
Mixed
Planned
2. Which of the following groups of players make all of the economic decisions in a free-market system?
Economic experts
Government planners
Consumers and producers
Workers
3. According to the circular flow model, which of the following is something consumers do that influences producers?
Purchase goods and services
Provide wages and profits
Produce goods and services
Use land and capital
4. Which of the following best explains why the free-market system follows a circular flow model?
The allocation of resources affects both production and distribution.
Goods and services are constantly recycled in a circular manner.
The free choices made by consumers and producers influence each other.
Profits flow in a circular way back and forth between consumers and producers.
5. Which of the following best explains how free choice is protected in a free-market system?
Consumers and producers protect their own freedom by making economic decisions.
The government makes and enforces whatever laws are needed to guarantee free choice.
Workers pressure producers to provide them with high enough wages to make free choices.
Conflict and competition among producers automatically lead to free choice for consumers.
6. Which of the following is necessary in addition to protection against theft, coercion, and fraud in order for consumers and producers to have freedom of choice?
Resources
Capital
Profits
Wages
7. Which of the following best explains the profit motive?
The motivation to work hard at a job in order to buy more goods and services.
The incentive to buy at a low price in order to be able to sell at a higher price.
The desire to make money through the production of goods and services.
The decision to allow market forces to decide on the price of goods and services.
8. Match the following economic systems with their definitions.
Matching:
Answer Potential Matches:
: Free-market economy
1: An economic system where decisions are made by producers and consumers.
2: An economic system run by the government.
3: An economic system that uses both free-market and command principles.
: Planned economy
: Mixed economy
9. In a command economy, who tells producers what and how much to produce?
Government planners
Economists
Consumers
Workers
10. The government does which of the following in a planned economy?
Runs the economic system
Protects freedom of choice
Maximizes efficiency
Guarantees equality
Command
Free-market
Mixed
Planned
2. Which of the following groups of players make all of the economic decisions in a free-market system?
Economic experts
Government planners
Consumers and producers
Workers
3. According to the circular flow model, which of the following is something consumers do that influences producers?
Purchase goods and services
Provide wages and profits
Produce goods and services
Use land and capital
4. Which of the following best explains why the free-market system follows a circular flow model?
The allocation of resources affects both production and distribution.
Goods and services are constantly recycled in a circular manner.
The free choices made by consumers and producers influence each other.
Profits flow in a circular way back and forth between consumers and producers.
5. Which of the following best explains how free choice is protected in a free-market system?
Consumers and producers protect their own freedom by making economic decisions.
The government makes and enforces whatever laws are needed to guarantee free choice.
Workers pressure producers to provide them with high enough wages to make free choices.
Conflict and competition among producers automatically lead to free choice for consumers.
6. Which of the following is necessary in addition to protection against theft, coercion, and fraud in order for consumers and producers to have freedom of choice?
Resources
Capital
Profits
Wages
7. Which of the following best explains the profit motive?
The motivation to work hard at a job in order to buy more goods and services.
The incentive to buy at a low price in order to be able to sell at a higher price.
The desire to make money through the production of goods and services.
The decision to allow market forces to decide on the price of goods and services.
8. Match the following economic systems with their definitions.
Matching:
Answer Potential Matches:
: Free-market economy
1: An economic system where decisions are made by producers and consumers.
2: An economic system run by the government.
3: An economic system that uses both free-market and command principles.
: Planned economy
: Mixed economy
9. In a command economy, who tells producers what and how much to produce?
Government planners
Economists
Consumers
Workers
10. The government does which of the following in a planned economy?
Runs the economic system
Protects freedom of choice
Maximizes efficiency
Guarantees equality