How Economic Systems Attempt To Allocate Resources Effectively
In our economic system we have three main resources that are combined into goods and services. In this quiz we will test the users knowledge of the importance of scarcity of resoures in economics and how effectively the various economic systems attempt to allocate these resources. Knowledge of how different economic systems work will also be tested here.
- 1.
In economics we have three main resources that are combined into goods and services, these are;
- A.
Workers, employees, managers
- B.
Equipment, vehicles, furniture
- C.
Human, natural,capital
- D.
Computers,workers,equipment
Correct Answer
C. Human, natural,capitalExplanation
The correct answer is "Human, natural, capital." In economics, these three resources are combined to produce goods and services. Human resources refer to the labor and skills of individuals involved in production. Natural resources are the materials and inputs derived from nature, such as land, water, and minerals. Capital resources are man-made goods used in production, including tools, machinery, and infrastructure. These three resources are essential for the production process and play a crucial role in economic activities.Rate this question:
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- 2.
The Koyoto agreement which was discussed in 1997 and ratified in 2001 and 2004, is a legally binding agreement between signed up countries to meet emmisions reduction targets of all greenhouse gases by 2012 relative to 1990 levels.This would explain why scarcity of resources is important to our business enviroment. Which resource below is threatening our present day exisitence.
- A.
Chewing gum
- B.
Petrol and oil
- C.
Gas and coal
- D.
Rain forest in the Amazon
Correct Answer
D. Rain forest in the AmazonExplanation
The Amazon rain forest is home to many endangered species and animals. The trees create oxygen and photosynthesis. It is the only forest that we have left in terms of size and diversity.The trees take in carbon dioxide and produce oxygen, so without these trees, global warming would increase substantially.We have to protect this natural resource.Rate this question:
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- 3.
There are two main types of ecomonmies, can you name them?
- A.
Demand economy and supply economy
- B.
Free trade and command economy
- C.
Command and free market economy
- D.
Demanding and free economy
Correct Answer
C. Command and free market economyExplanation
The two main types of economy are command and free market economy. A command economy is were supply and price are regulated by government forces. The government decide what goods and services are produced and how they are distributed. The former Soviet Union is an example of command economy. In a free market economy, a price is determined by forces of supply and demand, without outside influence, such as a government. This assumes that markets are efficient, which is not always the case.Rate this question:
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- 4.
A totally free market is rather hard to achieve, with most governments interfering with the economic structure, what do we call this type of economy, where governments control some of the economy.
- A.
Communism
- B.
Free market economy
- C.
Latent economy
- D.
Mixed economy
Correct Answer
D. Mixed economyExplanation
As mentioned most governments interfere in their counties economy, ie controlling prices of alcohol, imposing trade tariffs on imported goods, and providing free services like hospital and medical services, like the NHS in the UK. This is called a mixed form of economy.Rate this question:
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- 5.
How can a demand economy be a good idea?
- A.
In a world of limited resources, it protects and make a fair and efficient use of these resources.
- B.
It gives wealth to the rich and protects the poor
- C.
Competition provides the market with competitive prices of goods and services
- D.
People are motivated and utilizes resources efficiently
Correct Answer
A. In a world of limited resources, it protects and make a fair and efficient use of these resources.Explanation
A demand economy can ensure the continued use of all available resources and does not suffer from a business cycle. In a demand economy, neither unemployment nor idle production facilities should exist beyond minimal levels. The economy should be unimpeded by inflation or recession.Rate this question:
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- 6.
Mixed economy generally has a large public sector, examples of these are;
- A.
NHS, DVLA, local council,local housing associations
- B.
Virgin trains,BT,and National express
- C.
Manufacturing, hospitality, service industry
- D.
IT,Shipping,and Oil exploration
Correct Answer
A. NHS, DVLA, local council,local housing associationsExplanation
In most mixed economies, the public sector is a large part of the economy, by public sector, we mean services provided by the government, using funds obtained from taxes. In the Uk a good example would be the NHS.Rate this question:
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- 7.
Is a public sector in a mixed economy a good thing and why?
- A.
No - In general it does not make effective use of resources, and increases national debt.
- B.
Yes - it gives people of all incomes health care through private companies
- C.
Yes - it provides for a mostly upper class population
- D.
No - it would put more people out of work
Correct Answer
A. No - In general it does not make effective use of resources, and increases national debt.Explanation
In the UK we have a large public sector which has proved to be a burden on our tax system, UK debt is currently running at 66% (UK National debt). National debt is the money that the government owes the private sector and other purchases of UK guilt's. This is done when public spending is higher than income obtained via taxes which is called a deficit.Rate this question:
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- 8.
A mixed economy would try to privatise some sectors of the public sector, like railways, and telecommunications, is this a good idea and why?
- A.
Yes - companies like G4S have provided an excellent service, providing security for the Olympic games
- B.
Yes - A4e is escellent at providing employment services with no corruption
- C.
Yes - in general public sector privatistion can lead to lower prices due to competition, with some exceptions
- D.
Yes - privatization leads to employment
Correct Answer
C. Yes - in general public sector privatistion can lead to lower prices due to competition, with some exceptionsExplanation
In general it is accepted that privatization is a more effective use of resources, however in some cases, the privatization process has not been handled, with resultant fraud, mismanagement, as seen with the failure recently of G4S to provide security to the games.Rate this question:
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- 9.
What is the main advantage of a market economy?
- A.
It gives people choice, freedom and the ability to make a profit from using resources more efficiently.
- B.
Resources are controlled by the state, allocating them when needed.
- C.
The resources are centrally planned by the authority
- D.
Everybody will benefit in an equal way
Correct Answer
A. It gives people choice, freedom and the ability to make a profit from using resources more efficiently.Explanation
A market economy can be extremely unfair, producing a rich/poor divide, this was especially true when Margaret Thatcher and Ronald Reagan introduced Neoliberal economics, also known as financial colonialism. It sort to offer large companies in both countries unlimited access to other markets. (Occupy world sreet - Ross Jackson)Rate this question:
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- 10.
The primary sector is made up of ;
- A.
Banking
- B.
Government, local council,police
- C.
University,schools,teachers
- D.
Mining, farming, fishing
Correct Answer
D. Mining, farming, fishingExplanation
The primary sector are industries that are engaged in production or extraction of natural resources, such as crops, oil and ores.Rate this question:
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Current Version
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Mar 22, 2023Quiz Edited by
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Jul 17, 2012Quiz Created by
Kingfisher007
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