Economic Systems and Comparative Advantage Quiz

Test your knowledge on economic systems, market forces, comparative advantage, and more with this quiz on comparative economics.

#1

Which economic system relies on market forces to allocate resources?

Socialism
Capitalism
Communism
Feudalism
#2

In a command economy, who typically makes decisions about what and how much to produce?

Government authorities
Consumers
Private companies
Trade unions
#3

What is the primary goal of a centrally planned economy?

Maximizing consumer satisfaction
Maximizing individual freedom
Achieving economic equality
Encouraging private entrepreneurship
#4

Which economic system combines elements of both capitalism and socialism?

Mixed economy
Market economy
Planned economy
Traditional economy
#5

In which economic system are prices determined by supply and demand?

Socialism
Communism
Market economy
Planned economy
#6

Which of the following is a key feature of a traditional economic system?

Private property rights
Innovation and technological advancement
Rigid social roles and customs
Market competition
#7

What concept refers to a country's ability to produce a good or service at a lower opportunity cost than another country?

Marginal utility
Elasticity
Comparative advantage
Absolute advantage
#8

What is a disadvantage of a free-market economic system?

High degree of government intervention
Inefficient allocation of resources
Limited consumer choice
Decreased competition
#9

In international trade, what happens if a country specializes according to its comparative advantage?

It leads to a decrease in total global output
It increases the possibility of trade conflicts
It increases efficiency and overall global output
It encourages protectionist policies
#10

Which factor does NOT affect a country's comparative advantage?

Natural resources
Technological advancements
Cultural preferences
Labor force skills
#11

Which economist introduced the concept of comparative advantage?

John Maynard Keynes
Milton Friedman
Adam Smith
David Ricardo
#12

Which economic system emphasizes collective ownership of the means of production and distribution?

Capitalism
Socialism
Feudalism
Mercantilism
#13

Which economic system is characterized by private ownership of resources and minimal government intervention?

Socialism
Communism
Capitalism
Mixed economy
#14

Which economist is associated with the idea of the invisible hand in market economies?

Adam Smith
Karl Marx
John Maynard Keynes
Milton Friedman
#15

In which economic system does the government play a minimal role in resource allocation?

Socialism
Capitalism
Communism
Planned economy

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