Understanding Economic Systems Flashcard

Front

Which of the following is a characteristic of a market economy?
Options:
Government controls all production,
Prices are determined by supply and demand,
Resources are allocated by tradition,
Central authority makes all economic decisions

Back

Prices are determined by supply and demand

Front

In a traditional economy, how are economic roles typically determined?

Back

By customs and traditions

Front

Which of the following best describes a command economy? Businesses operate with little government intervention, Economic decisions are made by individual consumers, The government makes all economic decisions, Economic roles are based on family heritage

Back

The government makes all economic decisions

Front

What is a key feature of a mixed economy?

Back

Combination of private and public sector involvement

Front

How does a traditional economy typically handle technological change?

Back

Resistance to change and reliance on old methods

Front

Which type of economic system is most likely to support private business ownership and competition?

Back

Market economy

Front

In which type of economy are resources typically owned collectively or by the government?

Back

Command economy

Front

What is a common disadvantage of a command economy?

Back

Inefficient resource allocation

Front

Which of the following is a similarity between a mixed economy and a market economy? Both have no government involvement, Both rely solely on traditional methods, Both allow for private business ownership, Both have centrally planned production

Back

Both allow for private business ownership

Front

What is the main form of trade in a traditional economy?

Back

Barter system