Unit 5: Economic Systems

Question 1

Who argued that competition and hands off approach regulates the economy better than government

Accepted Answer

Adam Smith

Question 2

The system in which the government controls important resources, and leaves some for the people

Accepted Answer

Socialism

Question 3

When resources transition from being owned by individuals to the government this is called:

Accepted Answer

Nationalized

Question 4

The term "Laissez Faire" means:

Accepted Answer

Leave things alone; hands off

Question 5

Who decides what to produce in a market economy

Accepted Answer

Consumers and Producers

Question 6

Pure market economies do NOT have which of the following:

Accepted Answer

Government

Question 7

Which of the following economic systems does not exist in the real world?

Accepted Answer

Pure Market Economy

Question 8

The idea that consumers have the ultimate control over what is produced is called:

Accepted Answer

Consumer Sovereignty

Question 9

Which economic system relies heavily on the customs and belief of the group to make decisions.

Accepted Answer

Traditional Economic System

Question 10

The United States is most closely associated with a:

Accepted Answer

Market Economy

Question 11

Which of the following systems offers individuals the most choice?

Accepted Answer

Pure Market Economy

Question 12

Which of the following is a disadvantage of Traditional Economies?

Accepted Answer

People are not in jobs they are best suited for.

Question 13

In a market economy the real power is held by:

Accepted Answer

Consumers

Question 14

System based on Voluntary Exchange, Individual decisions, competition, and capitalism:

Accepted Answer

Market

Question 15

Who argued that workers would eventually rise up and revolt to create a classless society?

Accepted Answer

Karl Marx

Questions 15