Learn Mode

Economic Systems and Policies Quiz

Go to Quiz Page

Which economic system relies on supply and demand to determine prices and allocation of resources?

Market economy

Explanation

Price and resource allocation determined by market forces.

Who is considered the father of modern economics?

Adam Smith

Explanation

Considered the pioneer of modern economics.

Which economic system is characterized by private ownership of the means of production and minimal government intervention?

Market economy

Explanation

Private ownership and limited government intervention.

Who introduced the concept of 'invisible hand' in economics?

Adam Smith

Explanation

Concept of market self-regulation.

Which economic system is characterized by collective ownership of the means of production and centralized planning?

Command economy

Explanation

Centralized control over production.

What economic term describes the total value of all goods and services produced within a country's borders in a specific time period?

Gross Domestic Product (GDP)

Explanation

Total value of goods and services produced domestically.

Which economic policy advocates for government intervention in the economy to control unemployment and stabilize prices?

Keynesianism

Explanation

Government intervention to stabilize economy.

What economic term refers to the total amount of money circulating in the economy?

Money Supply (M2)

Explanation

Aggregate amount of money in circulation.

Which economic policy emphasizes reducing government spending and lowering taxes to stimulate economic growth?

Supply-side economics

Explanation

Stimulating growth through tax cuts and less regulation.

#10

What economic term describes the percentage increase in the general price level of goods and services over a period of time?

Inflation Rate

Explanation

Rate of price increase over time.

#11

What is the primary objective of fiscal policy?

Stimulate economic growth

Explanation

Aimed at fostering economic growth.

#12

What is the primary objective of monetary policy?

Regulate the money supply

Explanation

Control over money supply to influence economy.

#13

Who is credited with developing the theory of comparative advantage in economics?

David Ricardo

Explanation

Originator of the comparative advantage theory.

#14

Who developed the theory of the 'Tragedy of the Commons'?

Garrett Hardin

Explanation

Proposed theory on shared resources depletion.

#15

Who introduced the concept of 'creative destruction' in economics?

Joseph Schumpeter

Explanation

Proposed concept of innovation's destructive aspect.

Economic Systems and Policies Quiz

Which economic system relies on supply and demand to determine prices and allocation of resources?

Who is considered the father of modern economics?

Which economic system is characterized by private ownership of the means of production and minimal government intervention?

Who introduced the concept of 'invisible hand' in economics?

Which economic system is characterized by collective ownership of the means of production and centralized planning?

What economic term describes the total value of all goods and services produced within a country's borders in a specific time period?

Which economic policy advocates for government intervention in the economy to control unemployment and stabilize prices?

What economic term refers to the total amount of money circulating in the economy?

Which economic policy emphasizes reducing government spending and lowering taxes to stimulate economic growth?

What economic term describes the percentage increase in the general price level of goods and services over a period of time?

What is the primary objective of fiscal policy?

What is the primary objective of monetary policy?

Who is credited with developing the theory of comparative advantage in economics?

Who developed the theory of the 'Tragedy of the Commons'?

Who introduced the concept of 'creative destruction' in economics?

Test Your Knowledge