Understanding Economic Systems Flashcard

Front

What is a traditional economy primarily based on?

Back

Customary practices and cultural traditions

Front

In a market economy, who primarily determines the prices of goods and services?

Back

Consumers and producers

Front

Which type of economy emphasizes subsistence farming and bartering?

Back

Traditional economy

Front

What is a key characteristic of a command economy?

Back

Centralized control by the government

Front

In a traditional economy, how are occupations typically determined?

Back

Inherited and passed down through generations

Front

Which economy type encourages entrepreneurship and innovation? Options: Traditional economy, Command economy, Market economy, Mixed economy

Back

Market economy

Front

How does a command economy typically allocate resources?

Back

Through government directives and production targets

Front

Explain why a traditional economy might prioritize sustainability and harmony with nature over rapid development.

Back

Due to its focus on cultural heritage and subsistence living

Front

Describe how consumer sovereignty functions in a market economy.

Back

Consumers dictate production through their purchasing decisions.

Front

Identify a potential disadvantage of a command economy.

Back

Limited consumer choice and availability of goods