1. Chapter 2 Review
Made by students

2. Section 1—Economic Systems
Made by students

3. 1. Which of the following does not discourage new ideas?
A. Command
B. Traditional
C. Market
D. All of them do

4. 2. Which of the following best describes a command economy?
A. Found in the USA
B. Individuals have little choice
C. Elders make the decisions
D. All of the above

5. 3. Which type of economic system does America have?
A. Market
B. The hott! System
C. Command
D. Traditional

6. 4. What are the three economic systems?
A. Trade, commerce and market
B. Trade, command and movement
C. Traditional, command and market
D. None of the above

7. 5. Which economic system does not have the disadvantage of discouraging new ideas?
A. Traditional
B. Command
C. Market
D. None of the above

8. 6. Which economic system only rewards productive resources?
A. Traditional
B. Command
C. Market
D. All of the above

9. 7. Which is not an advantage for the command economy?
A. Stable and predictable life
B. Lacks government interference
C. Capable of dramatic change in a short time
D. Public services available for little or no cost

10. 8. What economic system is found in South Korea?
A. Traditional
B. Command
C. Market
D. Both A and B

11. 9. What economic system is found in tribes like the Australian Aborigines and Inuits?
A. Traditional
B. Command
C. Market
D. Free enterprise

12. 10. Which of the following is not one of the three economic systems?
A. Traditional
B. Command
C. Autocratic
D. Market

13. 11. In the market economy…
A. People face uncertainty as a result of competition
B. There is lack of gov’t interference
C. Public services are available for little or no cost
D. Both A and B

14. 12. Which system pertains to the elders making the decisions?
A. Command
B. Traditional
C. Market
D. Government

15. 13. In which system can markets fail?
A. Traditional
B. Command
C. Market
D. Stocks

16. 14. Which country has a command economy?
A. China
B. Russia
C. North Korea
D. South Korea

17. 15. Which system has decentralized decision making?
A. Traditional
B. Command
C. Market
D. All of the above

18. 16. Which of the following is not a factor for a market economy?
A. Capable of dramatic change in a short amount of time
B. Individual freedom
C. High degree of consumer satisfaction
D. Lack of gov’t inference

19. 17. Which country has a market economy?
A. Japan
B. USA
C. South Korea
D. All of the above

20. 18. A traditional economy A. Is decentralized
B. Is capable of dramatic change
C. Stems from ritual and habit
D. None of the above

21. 19. What is an example of a traditional economic system?
A. Central authority; Cuba
B. Consumer satisfaction; United States
C. Ritualistic; Aborigines
D. Cybertron; Optimis Prime

22. 20. What country has a command economy?
A. USA
B. Italy
C. England
D. Cuba

23. 21. Which system is considered the most prosperous?
A. Traditional
B. Command
C. Market
D. Control

24. 22. What is an advantage of a command economy?
A. Public services are provided for everyone
B. A variety of goods are produced
C. The markets may fail
D. A lack of gov’t interference

25. 23. Which system is controlled by a central authority?
A. Traditional
B. Command
C. Market
D. None of the above

26. 24. Who plays the biggest role in the market economy?
A. The government
B. Consumers
C. Warren Buffet
D. Bill Gates

27. Section 2—Economic Goals of the United States
Made by students

28. 25. The “American Dream” is defined as
A. Having a fast car and a mansion
B. Growing up penniless and becoming a millionaire
C. Having a more prosperous life then one’s parents
D. Getting rich through sports

29. 26. What is inflation? A. A rise in the general level of prices
B. When you blow up a balloon
C. A fixed income
D. Economic growth

30. 27. What unemployment rate do we want for full employment?
B. 5%
C. 8%
D. 2%

31. 28. It is illegal to discriminate against
A. Gender
B. Age
C. Race
D. All of the above

32. 29. Which of the following is not one of the seven economic goals?
A. Economic freedom
B. Economic security
C. Full employment
D. No one goes hungry

33. 30. It is illegal to discriminate on the following except?
A. Gender
B. Age
C. Race
D. Criminal record

34. 31. Economic freedom A. The gov’t chooses your job
B. You do what your dad does
C. There is no such thing
D. People can choose for themselves

35. 32. What can you choose with economic freedom?
A. How much you get paid
B. Where you work and who you vote for
C. Who you marry
D. Who dies

36. 33. Which best describes economic equity?
A. Businesses choose where and how
B. Equal pay for equal work
C. Inflation
D. Only A and C

37. 34. It is illegal to discriminate based on
A. Hair color
B. Weight
C. Religion
D. Shoe size

38. 35. Which of the following goals is needed so people can have more goods and services?
A. Price stability
B. Economic security
C. Economic freedom
D. Economic growth

39. 36. What doesn’t increase even though prices do?
A. Salary
B. Income
C. Fixed income
D. budget

40. 37. Full employment means that everyone that ___ a job should have the right to earn ____.
A. Needs; an income
B. Wants; an income
C. Wants; social security
D. Needs; social security

41. 38. Economic Efficiency means
A. All people have a job
B. The four factors are used wisely
C. Every cookie that is baked is eaten
D. All of the above

42. 39. What is the economic security for retirement?
A. Medicare
B. Unemployment compensation
C. Social security
D. Both A and C

43. 40. What does price stability mean?
A. Having stable prices makes it easier to budget
B. Keeping everything equal
C. Having prices go up and down
D. Both A and C

44. 41. Which of the following is not an economic goal?
A. Economic freedom
B. Economic inflation
C. Economic equity
D. Economic security

45. 42. Which economic goal is considered to protect people from discrimination?
A. Economic equity
B. Economic security
C. Economic efficiency
D. Economic freedom

46. 43. What factors of production are wisely used for economic efficiency?
A. Land and labor
B. Capital
C. Entrepreneur
D. All of the above

47. 44. Which of the following is not a part of economic security?
A. Insurance
B. Unemployment compensation
C. Social security
D. All are parts of economic security

48. 45. It is legal to discriminate against
A. Race
B. Stinky breath
C. Age
D. Gender

49. Section 3—Characteristics of a Market economy and the government’s role
Made by students

50. 46. Which characteristic of a market economy is the struggle among sellers to attract customers?
A. Protector
B. Competition
C. Promoter of national goals
D. Profit motive

51. 47. Which of the following is not a characteristic of a market economy?
A. Economic freedom
B. Involuntary exchange
C. Voluntary exchange
D. Private property rights

52. 48. What role of gov’t requires preserving competition?
A. Regulator
B. Protector
C. Promoter
D. Competition

53. 49. Which is not part of the four roles of gov’t?
A. Protector
B. Creator
C. Regulator
D. Promoter of the national goals

54. 50. Which of the following is a characteristic of a market economy?
A. Stable
B. Competition
C. Forced exchange
D. Economic force

55. 51. What is the incentive for people to work harder?
A. Competition
B. Profit motive
C. Private property rights
D. Profit

56. 52. Which is not a characteristic of a market economy?
A. Voluntary exchange
B. Profit motive
C. Competition
D. Economic security

57. 53. The gov’t role of protector…
A. Enforces laws
B. Protects against false advertising
C. Protects against unsafe food and goods
D. All of the above

58. 54. Which role of gov’t preserves competition?
A. Protector
B. Provider and consumer
C. Promoter of national goals
D. Regulator

59. 55. What is an income that does not rise even though prices do?
A. Inflation
B. Salary
C. Fixed income
D. Fixed raise

60. 56. What is a market economy also referred as?
A. Socialist
B. Communist
C. Capitalist
D. marketman

61. 57. Freedom to choose is A. Voluntary exchange B. Profit motive
C. Competition
D. Economic freedom

62. 58. Which is a role of the gov’t?
A. Regulator
B. Equality
C. Be nice
D. Follow rules or die

63. 59. A regulator A. Enforces laws B. Preserves competition
C. Provides economic freedom
D. None of the above

64. 60. Which of the following isn’t one of the four roles of gov’t?
A. Protector
B. Promoter of national goals
C. Boss of private industry
D. Regulator

65. 61. Competition is created when
A. Businesses struggle to attract consumers
B. The government makes it
C. Everyone else fails
D. Beauty pageants make it

66. 62. What is better off at the end then at the beginning?
A. Profit motive
B. Competition
C. Profit
D. Freedom

67. 63. The US is officially a A. Free enterprise
B. Modified free enterprise
C. Pure capitalist
D. Market with a touch of traditional

68. 64. A voluntary exchange A. Needs approval by the gov’t B. Is illegal
C. Does not exist
D. Occurs when buyers and sellers freely make transactions

69. 65. A market economy may also be referred to as
A. Capitalist
B. Mixed free enterprise
C. Free enterprise
D. All of the above

70. 66. What characteristic of the market economy is it when people may own and control their possessions as they wish?
A. Voluntary exchange
B. Private property rights
C. Economic freedom
D. Profit motive