1. Which of the following is a basic question for an economic system?

a. for whom goods and services are produced.

b. how goods and services are produced.

c. what goods and services are produced.

d. all of the above.

2. What are the three basic types of economic systems?   1. __________, 2. _________ and 3.____________.

3. In which type of economic system are the basic economic questions answered by central authority? __________

4. Which of the following economic systems answers the basic economic questions by copying the previous generation?

a. Traditional economy

b. Capitalism

c. Market economy

d. Mixed economy

5. In which system do buyers and sellers communicate their intentions to one another through prices?

a. Traditional economy

b. Socialism

c. Market economy

6. Which famous economic philosopher believed that competition among people who followed their own self interest could best benefit society?

a. Alfred Marshall

b. Adam Smith

c. Karl Marx

d. Milton Friedman

This concept is called the _____________________.

In what year did this individual publish his most famous work?

7. The economic system in which the basic economic questions are answered through markets with some government intervention is a ________ ______________.

8. The system you identified in #7 is found in few countries or in most countries?

9. The economic system in which private individuals own the factors of production and decisions are made through consumer sovereignty is:

a. a planned economy

b. capitalism

c. collectivism

d. socialism

10. Why might critics of the system you selected in #9 point to the 2010 BP oil spill disaster in the Gulf of Mexico as a failure of this system?

11. In Karl Marx's ideal society, the state (central authority):

a. actively promotes income incentives.

b. follows the doctrine of laissez faire.

c. owns resources and conducts planning.

d. does not exist.

12. In what year did Marx publish his first major work?

13. How many nations in the world today operate totally according to Karl Marx's theory of communism?

a. Several.

b. Only the United States.

c. None.

d. Many.

14. Socialism is an economic system characterized by:

a. private ownership of resources and market decision-making.

b. government ownership of most resources and centralized decision-making.

c. cooperation, sharing, and little central government.

d. a complex structure of rules and traditions that dictate decision-making.

15. your author's reckoning, on a continuum from pure socialism to pure capitalism, which country comes closest to pure socialism? Which area comes closest to pure capitalism?

16. Which country began introducing some free market reforms in the late 1970s and is now the chief manufacturer of the world's copiers, microwave ovens, DVD players, and shoes? It also produces more vehicles than any other country in the world.