18 Questions
What is a negative consequence of socialism?
A brain drain, or loss of the best and brightest people to other countries
What is a characteristic of command economies?
The government decides what goods and services are produced
What is happening in socialist governments today?
They are cutting back on social programs, lowering taxes, and moving towards capitalism
What is a characteristic of communist systems?
Prices don't reflect demand, which may lead to shortages
What is a trend in capitalist countries today?
They are moving more towards socialism
What is a consequence of communism?
Severe economic depression
What is the primary goal of economics?
To allocate scarce resources efficiently
Which economic system is characterized by private ownership of the means of production and creation of goods for profit?
Capitalism
What is a key difference between socialism and communism?
Socialism allows for private ownership, while communism does not
What is the trend in many modern economies, where elements of both capitalism and socialism are combined?
Mixed Economy
What is the term for the total value of goods and services produced within a country's borders over a specific time period?
Gross Domestic Product (GDP)
What are the two main tools used by governments to influence economic activity?
Monetary policy and fiscal policy
What is the market price determined by?
Supply and demand
What is a characteristic of perfect competition in a free market?
Many companies compete with each other
What is a limitation of free markets?
It allows people to let greed drive them
What is a key characteristic of socialism?
Some basic businesses are owned by the government
What is a benefit of socialism?
It provides free education and health care
What is the main difference between socialism and capitalism?
Socialism involves government ownership of businesses, while capitalism involves private ownership
This quiz covers the basics of economics and how it affects business, including different economic systems such as free-market capitalism, socialism, and communism.
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