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Economic Systems and Structures Quiz

#1

Which of the following is a characteristic of a traditional economic system?

Customs and traditions dictate economic decisions
Explanation

Relies on customs and traditions for economic decisions

#2

In a market economy, prices are primarily determined by:

Supply and demand
Explanation

Prices determined by supply and demand

#3

In a mixed economy, who typically owns and controls the means of production?

Both government and private individuals
Explanation

Means of production owned and controlled by both government and private individuals

#4

Which economic system places a high value on equality and social welfare?

Socialism
Explanation

Emphasizes equality and social welfare

#5

Which economic system is characterized by the absence of private ownership of resources and central planning by the government?

Communism
Explanation

Absence of private ownership and centralized planning

#6

Which economic system advocates for public ownership of resources and centralized planning?

Socialism
Explanation

Advocates public ownership and centralized planning

#7

Who is often considered the father of modern economics due to his work 'The Wealth of Nations'?

Adam Smith
Explanation

Considered father of modern economics for 'The Wealth of Nations'

#8

What is the primary role of the Federal Reserve System in the United States?

Monetary policy
Explanation

Primary role is conducting monetary policy

#9

Which economic system advocates for minimal government intervention and emphasizes individual freedom?

Capitalism
Explanation

Emphasizes minimal government intervention and individual freedom

#10

Which of the following is a characteristic of a command economy?

Centralized planning by the government
Explanation

Characterized by government centralized planning

#11

Which economic system allows for a significant degree of government intervention while still retaining some elements of free market capitalism?

State capitalism
Explanation

Combines government intervention with free market capitalism

#12

What economic term describes a situation where the quantity of goods and services supplied exceeds the quantity demanded?

Surplus
Explanation

Surplus occurs when supply exceeds demand

#13

Which economic system relies on the principles of supply and demand to determine prices and production?

Market economy
Explanation

Prices and production determined by supply and demand

#14

Which economic system features both private ownership of resources and government intervention in the economy?

Mixed economy
Explanation

Features both private ownership and government intervention

#15

Which economic system allows for private ownership of resources but also involves significant government intervention?

Mixed economy
Explanation

Allows private ownership with significant government intervention

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