QUESTION 1

We following 5 general types of institutions as critical in differentiating economic system:

Ownership

Form of Allocation: Market vs Plan

Level of decision making (centralization vs decentralization)

*System of Motivation and incentive mechanism

How to make public choices, type of state

True

False

QUESTION 2

Property ownership rights include

A disposition and utilization.

B disposition, utilization, and the right to use the products and services generated

QUESTION 3

The modern approach to defining economic systems

A is based on the "isms" of capitalism and socialism.

B emphasizes resource allocation arrangements over incentive systems.

C defines economic systems according to a number of characteristics

D recognizes that defining economic systems is impossible

QUESTION 4

An economic system is the set of institutional arrangements used to allocate resources.

According to North, institutions are the rules of the game of society, human devised constraints

True

False

QUESTION 5

The major economic systems studied in this class are:

A. Feudalism, capitalism, and communism

B state capitalism, market capitalism, and planned communism.

C decentralized and centralized systems.

D planned socialism, market socialism, and capitalism