MCAP Review 15: Types of Economies

Front

In this type of economy, individuals and groups can own businesses, but must follow strict government regulations.

Back

mixed economy

Answer explanation

It's mixed because there's a mix of private ownership of business and government involvement.

Front

The government provides small business loans to promote entrepreneurship. What type of economy does this represent? Options: traditional economy, command economy, market economy, mixed economy

Back

mixed economy

Answer explanation

It's mixed because there's a mix of private ownership of business and government involvement.

Front

The laws of supply and demand are typically ignored in which type of economy? Options: traditional economy, command economy, market economy, mixed economy

Back

mixed economy

Answer explanation

It's mixed because there's a mix of private ownership of business and government involvement.

Front

The government controls resources, land, and factories.

Back

command economy

Answer explanation

It's mixed because there's a mix of private ownership of business and government involvement.

Front

The basic economic questions in the United States are mainly answered by

Back

individuals and businesses

Front

A traditional economy is an economic system

Back

based on long-standing customs

Front

Which statement explains why this cartoon illustrates a mixed economy? Options: The employee sells a variety of products to the customers. The employee can use his wages to pay for living expenses. The government tells a private business how much to pay its employees. The business sets the prices that customers pay for the food.

Back

The government tells a private business how much to pay its employees.

Answer explanation

It's a mixed economy because it's a mix of privately owned business and government regulation.

Front

Which of these is a characteristic of a market economy? limited business rights, competition between businesses, government control and ownership of property, nationwide pricing rules for goods and services

Back

competition between businesses