Economic Systems

Question 1

an economic system in which the government owns some, but not all, of the factors of production

Accepted Answer

socialism

Question 2

In a communist economy, the factors of production are owned by

Accepted Answer

government

Question 3

Which of the following statements about capitalism and communism are correct

Accepted Answer

both require investments in capital

Question 4

In the circular flow model, government payments to individuals are called

Accepted Answer

transfer payments

Question 5

Open opportunity helps to ensure that everyone is free to

Accepted Answer

own a business

Question 6

Supply and demand drives which economic system

Accepted Answer

market economy

Question 7

In a free enterprise economy, the center of the circular flow model is

Accepted Answer

government

Question 8

The idea that worker training and skill can increase production

Accepted Answer

specialization

Question 9

In the circular flow model, government benefits provided to both businesses and individuals

Accepted Answer

public goods

Question 10

a person who chooses to, and is free to, open a grocery store is within a

Accepted Answer

free enterprise economy

Question 11

sovereignty in the free market is held by the

Accepted Answer

consumer

Question 12

An economic system in which decisions are made based upon customs

Accepted Answer

traditional economy

Question 13

In the marketplace, producers are driven to

Accepted Answer

earn a profit

Question 14

An individual buying a DVD of their choice is partipcating in the

Accepted Answer

product market

Question 15

In the circular flow model, what is sold on the resource market?

Accepted Answer

all of the these

Question 16

Which of these would be a negative externality

Accepted Answer

pollution from a factory pollutes a nearby river

Question 17

a scenario in which supply and demand cannot become equal

Accepted Answer

market failure

Question 18

which of the following are characteristics of public goods

Accepted Answer

both of these

Question 19

Government officials deciding distribution of resources is a feature of

Accepted Answer

command economy

Question 20

street lighting would be example of a

Accepted Answer

public good

Question 21

The idea that goods are openly sold in the free enterprise system is known as

Accepted Answer

voluntary exchange

Question 22

In the circular flow model, govt payments to spur production of a specific good

Accepted Answer

subsidies

Question 23

In the circular flow model, what is sold on the product market?

Accepted Answer

goods and services

Question 24

a person who does not pay for a service, but receives the benefit of it

Accepted Answer

free rider

Question 25

Free contract means that people can choose

Accepted Answer

for themselves what legal agreements to enter into

Economic Systems

Questions 25

Economic Systems

Questions 25