Florida Teacher Certification Examinations (FTCE) Social Science Practice Test

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Master the FTCE Social Science Test. Prepare with flashcards and multiple-choice questions, each offering hints and explanations. Gear up for your certification!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What economic framework includes quotas, license fees, and subsidies?

Market economy
Communist society
Free enterprise system
Planned economy

The correct answer is: Planned economy

The correct choice is related to a planned economy, which is characterized by significant government intervention in the economic activities of a country. In a planned economy, the government often sets production goals and controls resource allocation. This includes the implementation of quotas to limit production or consumption of certain goods, imposing license fees for businesses to operate in specific sectors, and providing subsidies to support certain industries or help consumers afford essential goods. These tools are designed to manipulate the market for the perceived greater social good, ensuring that economic outcomes align with national goals rather than allowing market forces to dictate prices and production levels. In contrast, a market economy relies more on supply and demand without regular government intervention, a communist society may mention communal ownership and absence of private property, and a free enterprise system encourages free market principles but typically limits government controls like quotas and subsidies. Therefore, the defining characteristics and mechanisms of a planned economy make it the accurate choice for this question.