Fundamentals of Political and Economic Systems Quiz

Challenge yourself with questions on economic systems, laissez-faire, invisible hand, and more. How well do you understand political and economic principles?

#1

Which economic system relies on private ownership of the means of production?

Socialism
Capitalism
Communism
Fascism
#2

Who is considered the father of modern economics?

Adam Smith
Karl Marx
John Maynard Keynes
Milton Friedman
#3

Who developed the theory of the 'invisible hand'?

John Locke
Adam Smith
Karl Marx
Friedrich Hayek
#4

Which of the following is a feature of a traditional economy?

Private ownership of resources
Market-driven prices
Customs and traditions determine economic decisions
Government intervention in the economy
#5

Who is known for their work 'The Wealth of Nations'?

Adam Smith
Karl Marx
John Maynard Keynes
Milton Friedman
#6

What economic term describes the total amount of goods and services available for purchase by consumers?

Supply
Demand
Scarcity
Market equilibrium
#7

In which political system does the government have complete control over the economy?

Capitalism
Socialism
Communism
Mixed economy
#8

What is the main principle of laissez-faire economics?

Government intervention in the economy
Free market without government interference
Equal distribution of wealth
State ownership of production
#9

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

Private ownership of businesses
Government control over production and distribution
Free market competition
Consumer sovereignty
#10

What is the primary goal of a mixed economy?

Maximizing profit for private businesses
Achieving economic equality
Balancing economic growth with social welfare
Complete government control over the economy
#11

Which economic system advocates for the abolition of private property and a classless society?

Socialism
Capitalism
Communism
Mercantilism
#12

What is the term for a situation where a single seller dominates the market, controlling the supply and price of a product or service?

Oligopoly
Monopoly
Perfect competition
Monopsony
#13

Who coined the term 'invisible hand' to describe the self-regulating nature of the market?

Karl Marx
Adam Smith
John Maynard Keynes
Friedrich Hayek
#14

Who introduced the concept of 'comparative advantage' in economics?

David Ricardo
John Maynard Keynes
Milton Friedman
Joseph Stiglitz
#15

What is the key feature of a centrally planned economy?

Private ownership of resources
Decentralized decision-making
Government control over resource allocation
Market-driven prices
#16

Who proposed the 'Theory of the Second Best', suggesting that if one market imperfection exists, introducing another may actually improve welfare?

Paul Samuelson
John Hicks
Richard Lipsey
Kenneth Arrow
#17

Who introduced the concept of 'opportunity cost' in economics?

John Maynard Keynes
Alfred Marshall
David Ricardo
Milton Friedman
#18

Who is credited with developing the concept of 'rational expectations' in economics?

John Maynard Keynes
Milton Friedman
Robert Lucas Jr.
Paul Samuelson

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