Types of Economy Quiz

An economic system where individuals and businesses own and control the means of production, with minimal government intervention.

An economic system where the state owns and controls all means of production and distribution, with centralized planning.

An economic system that combines elements of both capitalism and socialism, with a mix of private and public ownership.

The ability of individuals and businesses to own and control assets, such as land, buildings, and capital.

The basic economic problem of how to allocate scarce resources to satisfy unlimited wants.

The use of resources to produce goods and services.

The process of consuming goods and services.

The factors used in the production of goods and services, including land, labor, capital, and entrepreneurship.

A system where private individuals and companies own and control the means of production and distribution, and profits are sought in a competitive market.

The freedom for individuals to make economic choices, such as consuming, producing, and investing, without undue government interference.

The rivalry between producers to attract customers, driving innovation and lower prices.

The idea that consumers have the power to determine what is produced by their purchasing decisions.

The motivation of individuals to act in their own self-interest, leading to economic activity.

A system where supply and demand forces determine prices, signaling to producers and consumers about what to produce and consume.

The government's role in a capitalist economy is limited, mainly to enforce laws, provide public services, and maintain a stable environment for economic activity.

The pursuit of profit drives economic activity in capitalism, with producers seeking to maximize their gains.

The value of the next best alternative that is given up when making a decision.

A curve displaying all possible combinations of two goods that an economy can produce with its available resources and technology.

The process of deciding how to use resources to produce and distribute goods and services.

The use of prices to communicate information and coordinate economic activity.

A government-set price for a good or service, often to control affordability.

Financial support provided by the government to make goods or services more affordable.

The process of overseeing and regulating the activities of private businesses to promote national objectives.

A socialist economy where the government controls all economic factors - production, consumption, and investment - allocating resources based on national priorities and resource availability.

A core principle in socialism where income and wealth are distributed fairly among members. It does not imply absolute equality, but rather aims for social justice and considers work contributions.

In socialism, everyone is considered a worker, eliminating class conflict between employers and employees. The focus is on collective work and shared ownership.

A system where the government owns and manages businesses to provide public services and welfare. Examples include healthcare, education, and infrastructure.

A system where individuals are free to start businesses, make profits, and compete in the market. It operates based on supply and demand and profit motive.

In a mixed economy, individuals have the freedom to choose their profession, buy goods and services, and businesses are free to operate. However, the government regulates to ensure social welfare.

Government actively plans economic growth and development through strategies and policies. It may regulate private sector activities to achieve social objectives.

Splitting work into many parts and assigning each part to a worker based on their skills and experience.

The outcome of dividing labor, where individuals or firms focus on tasks they're good at and become experts.

Producing goods or services most efficiently by assigning specific tasks to workers with the right skills.

Doing the same thing repeatedly leads to improved skill and speed.

Workers becoming dependent on a specific task and losing skills in others.