Economic Systems Test Review

Economic Systems Test Review
Word Bank (Some will be used more
than once)
Free Enterprise
Government Officials
Custom and Tradition
Producers and
1. Socialism
 Which type of economic system does the government own
and operate basic industries?
 Nation’s most important businesses are owned by the
 People’s basic needs (health care, transportation, education,
housing) are met for free or at a very low cost.
2. Decreases
 What happens to the price of a good or service when the
supply is higher than the demand?
3. Custom and Tradition
 In a Traditional Economy, what decides what people
4. Capitalism
 What is another word for Free Enterprise?
5. Command
 Which type of economic system is completely controlled by
the government?
 This system is typically run by a dictator or tyrant
 Government controls all resources/industries
 Government ownership of property
6. Traditional
 Which economic system does not have any government
interference at all?
 This economic system has little to no competition at all.
7. Equilibrium
 What happens to the price of a good or service when the
supply equals the demand?
8. Free Enterprise
 Which economic system does supply and demand
determine the price of a good?
 This economic system gives people choice in what to
produce and how.
9. Subsistence Agriculture
 What type of farming method is where families grow just
enough food to feed themselves?
10. Producers and Consumers
 In a free enterprise economy the three economic questions
are answered by the interplay between the ___________
and ___________.
 They also determine which goods and services are
produced and in what quantities.
11. Free Enterprise
 Which type of economic system has little government
interference and ability to make profits ?
12. Increases
 What happens to the price of a good or service when the
demand is higher than the supply?
13. Communism
 Which economic system is based on the following?
1. No competition
2. Based on cooperation, in which all workers should labor
together and share equally
3. Supposed to be beneficial for all
4. Goal is to achieve a classless society
5. Government ownership of property
14. Consumers
 For whom are the goods and services produced in Free
Enterprise Economy?
15. Economic System
 An ___________ system describes how a country’s
economy is organized.
 because of the problem of scarcity, every country needs a system
to determine how to use its productive resources
16. Free Enterprise
 In which economic system would you expect the widest
selection of consumer goods?
17. Socialist
 In Indonesia, the government owns large industries and
sets some prices. However, private businesses are also
encouraged. This country's economic system can best be
classified as ___________________.
18. Government Officials
 Which group has the greatest influence in determining
what goods and services will be produced in a communist
economic system?
19. Socialism
 In which economic system does the government often own
major businesses?
20. Bonus – Choose your BEST shooter
 How does the economic system here in the United States
(Free Enterprise) affect your daily life?