1What is an economic system?

a particular set of institutional arrangements and a coordinating mechanism to respond to the individual's economizing problem

a particular set of institutional arrangements and a coordinating mechanism to respond to the society's economizing problem

a type of government

a system of economics

2.Economic systems are the same for every society.

True

False

3.This type of economic system has their economic activity controlled solely by the market, with little to no government interference.

Laissez-faire

Mixed

Market

Command

4.Name 2 PROS and 2 CONS of living in a Laissez-faire economic system.

5.List 2 PROS and 2 CONS of living in a command economic system.

6.Which issue is due to the logistically impossible task of directing the economic decision making for millions of people and firms in a nation?

Coordination issue

Incentive issue

Private property rights issue

Command issue

7Most of the world has which economic system?

Market system

No system

Laissez-faire system

Command system

8.What is the most important consequence of having private property rights?

It results in no incentive to improve quality control

It provides a way for people to do what they do best in specialization

There is no consequence

It ensures that all economic transactions are mutually agreeable.

9.A mixed market system means that both the government and market directs the economic activity; the extent of control varies from system to system.

Question 9 options:

TrueFalse

10.n the factors of production market, who are the sellers and what are they selling?

Firms, selling their goods/services

Firms, selling their labor

Households, selling their labor

Households, selling their goods/services