Economic Systems Quiz
  • 1. All of the following are examples of a traditional economy except -
A) The barter system
B) Subsistence agriculture
C) Hunting and gathering
D) Large scale manufacturing
  • 2. Which activity would be most characteristic of people in a traditional society?
A) Having the same occupation as their parents
B) Working in an industrialized cities
C) Establishing a mercantile system of trade
D) Serving in government assemblies
  • 3. How are major economic decisions made in a command economy?
A) Manufacturers of industrial goods control the resources
B) Officials of the government control all aspects of economic activity
C) Wholesalers of agricultural goods make most of the decisions
D) Supply and demand are determined by consumers of foodstuffs
  • 4. Which of the following lists the economic systems in the correct order they would appear on the economic spectrum?
A) Mixed, Command, Free Enterprise
B) Command, Mixed, Free Enterprise
C) Free Enterprise, Command, Mixed
D) Free Enterprise, Mixed, Command
  • 5. The key principle of the economic theory of communism is –
A) The government ownership, control and regulation of property
B) The organization of workers’ unions in industrialized nations
C) The privatization of business and production of goods and services
D) The restoration of a bartering system in developing countries
  • 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) Prices are set by consumers
B) Resources are allocated by government decisions
C) A variety of economic incentives encourage business growth
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) They determine the type and quantity of goods to be produced through Five Year Plans
D) The success of the agricultural sector controls the manufacturer's goods
  • 9. In which economic system would a person expect the widest selection of consumer goods?
A) Socialist
B) Free Enterprise
C) Communist
D) Traditional
  • 10. Which group has the greatest influence in determining what goods and services will be produced in a communist economic system?
A) Government officials
B) Bankers
C) Consumers
D) Farmers
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