1. An economic system is how a nation organizes _______________.

A. its economy.

B. factors of production

C. supply and demand

D. politics

2. What are the 3 economic questions?

A. What to produce? How To Produce? For whom to produce?

B. Who to produce? Why you produce? Like to produce?

C. Why to produce? Tell who to produce? Things to produce?

D. What to produce? How to produce? When to produce?

3. What type of economic system allows the government to resolve those 3 economic questions in question # 2?

A. Market

B. Mixed

C. Command

D. Traditional

4. An economic system in which business are allowed to produce any

goods and services they wish to is referred to as

A. Centrally planned economy.

B. Free Enterprise.

C. Mixed economy.

D. Private economy.

5. Which of the following best explains a mixed economy?

A. Private ownership of the factors of production and regulation of

businesses by government.

B. Market exchanges answer all three of the big economic questions.

C. Family customs and traditions determine what and how to produce a

good.

D. All of the above.

6. Mixed Economies exist because

A. the marketplace doesn't address everything society needs.

B. governments want to provide full employment.

C. individuals and business control the factors of production.

D. they always increase economic freedom.

7. What is the main goal of a Mixed Economy?

A. To gain private property.

B. To ensure fairness in business.

C. To get rid of high taxation.

D. To promote individual and social rights.

8. What are two key advantages to a free market?

A. The ability to innovate and have freedom to what people can produce without the government intervention.

B. The ability to innovate and invent anything a person wants.

C.The freedom of speech, right to bare arms, and freedom to vote.

D.There are no advantages.

9. Capitalism is most associated with which type of economy?

A. Free market with limited government intervention.

B. Centrally planned economy.

C. Traditional economy.

D. Centrally planned economy with limited free market initiatives.

10. For markets to work efficiently, need to be well defined and enforced by law, otherwise trade would break down.

A. competition

B. private property rights

C.voluntary exchange

D.consumer sovereignty

True/False (Underline and boldT or F)

11. T F Market Capitalism is based on the belief that democratic means

should be used to evenly distribute wealth throughout a society.

12. T F Planned Socialism is a political system characterized by a

centrally planned economy with all economic and political power

resting in the hands of the central government.

13. T F An economic system is a way in which people decide to organize the

production, distribution, and consumption of goods and services.

14.T F All societies answer the three basic questions in the same way.

15. T F Mixed Economy is an economic system in which the central government makes all decisions on the production and consumption of goods and services.

Short Answer Question

16. Of the three economic systems, which one would you prefer most as a desirable economic system and why? Explain briefly.