Understanding Economic Systems 2024

Front

What are the three basic questions all economic systems face?

Back

What, how, and for whom to produce

Front

In an economic system, if the government invests more in building new roads, what is likely to happen?

Back

Fewer resources will remain for maintaining national parks

Front

Which of the following best describes a traditional economic system? Options: Based on supply and demand, Centrally planned by the government, Guided by customs and historical practices, A mix of private and public ownership

Back

Guided by customs and historical practices

Front

In a command economic system, who typically makes the decisions about production?

Back

Government authorities

Front

Which economic system is primarily driven by supply and demand?

Back

Market system

Front

What is a key characteristic of a mixed economic system?

Back

It combines elements of both command and market systems

Front

Which of the following is an advantage of a traditional economic system? Rapid technological innovation, High economic efficiency, Preservation of cultural practices, Flexible response to market changes

Back

Preservation of cultural practices

Front

In a market system, how are production decisions typically made?

Back

Based on consumer preferences and market forces

Front

What is a potential disadvantage of a command economic system?

Back

Government inefficiencies

Front

Which economic system is most likely to encourage innovation through competition? Options: Traditional system, Command system, Market system, Barter system

Back

Market system