Completes the statement. ____ 1. Who decided in the former Soviet Union what was to be produced and in what

____ 1. Who decided in the former Soviet Union what was to be produced and in what

quantities?

a) workers and employees

b) state planners

c) businesses

____ 2. For how many years ahead does the state decide what the nation is to produce?

a) the state doesn’t set any plans at all

b) ten years ahead

c) five years ahead

____ 3. What is a major problem faced by command economies?

a) responding to changes in people’s tastes and fashions

b) deciding what to produce

c) predicting changes in demand

____ 4. Who are the profits made in command economy paid to?

a) to the government

b) to workers

c) to top managers

____ 5. What does the state ensure to everyone in command economy?

a) production of as many luxury goods as people want to buy

b) purchasing of land

c) a good education and proper health care

____ 6. Individuals and businesses have the greatest say about what is produced in

a) market economies.

b) traditional economies.

c) command economies.

d) all economic systems.

____ 7. In this country goods and services are produced in much the same way as long

as anyone can remember. Occupations are determined at birth. The country

has

a) market economy.

b) traditional economy.

c) command economy

d) mixed economy.

____ 8. In another country, privately owned business firms can produce goods or service

in any lawful manner that they choose. This country has a

a) market economy.

b) traditional economy.

c) command economy.

d) mixed economy.

____ 9. In a free enterprise system

a) individuals may enter any lawful business.

b) each citizen has the right to vote in elections.

c) goods are so plentiful that they are free.

d) workers do not charge for their labor.

____ 10. An economy is “mixed” when

a) goods and services are produced by both publicly and privately owned businesses.

b) government owns or controls all businesses.

c) economic decisions are made by tradition.

d) there is a “mixture” of rich and poor people.

____ 11. Which of the following decisions did not involve an economic incentive?

a) Alex saved his extra money in an account earning 6.5% interest.

b) Beta General Corp. purchased new robots to increase production.

c) Carlos feels it is important to stay healthy, so he spent the weekend hiking in the mountains.

d) Dolores returned to school to learn computer programming.

____ 12. Which of the following is a reason for government participation in the economy.

a) to reduce competition in the marketplace.

b) to provide goods and services more cheaply than private enterprise.

c) to regulate harmful externalities.

d) to guarantee that all business firms earn the profit.

____ 13. Which of the following is an example of a public good or service?

a) traffic lights.

b) World Series baseball games.

c) fuel-efficient compact automobiles.

d) computer repair service calls.

____ 9. Which economic system is based on a market economy?

a) capitalism.

b) communism.

c) socialism.

d) traditionalism.

____ 10. We generally refer to a nation that has a democratic political system, together

with government ownership of major industries, as

a) capitalist.

b) communist.

c) socialist.

d) fascist

____ 11. Which term does not belong with the other three?

a) Gosplan.

b) price-directed economy.

c) central economic planning.

d) five-year plan.