F3: Economic Systems and Goals
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by Stephanie Foy
| 7 Questions
1
1
In Cuba, stores that sell cigars all sell them for the same price.  The government determines the price and there is no competition among the stores.  There is no incentive to even have competition – the store owners will make the same amount of money regardless.

Based only on the information in the above paragraph, Cuba's economic system can best be categorized as a
market economy
laissez-faire economy
command economy
traditional economy
2
1
In Cuba, stores that sell cigars all sell them for the same price.  The government determines the price and there is no competition among the stores.  There is no incentive to even have competition – the store owners will make the same amount of money regardless.

Based only on the information above, which of the goals listed below is the highest priority for Cuba?
economic efficiency
economic growth
economic freedom
price stability
3
1
A society decides to produce using limited labor and instead focuses on using high-end physical capital.

Which of the three basic economic questions is being answered by this statement?
For whom will it be produce?
How will it be produced?
What will we produce?
Why will it be produced?
4
1
In a market economy, producers will make what buyers wish to purchase. This phenomenon is known as

competition
consumer sovereignty
private ownership
government regulation
5
1
Which of the following headlines would MOST LIKELY be found in a country that values the economic goal of growth?
"Price of food hits record highs."
"Government to offer new job training opportunities."
"Country population is in stark decline."
"Interest rates on rise throughout the economy.

6
1
A society that is highly focused on increasing productivity likely values
efficiency and equity
efficiency and growth
freedom and equity
security and equity
7
1
Command economies are most closely associated with
economic freedom.
government regulation.
competition.
private ownership.
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