Economic Systems of Africa Review Flashcard

Front

Which of the following questions is NOT one of the three essential questions answered by all economic systems?
What to produce?
How to produce?
For whom to produce?

Back

Where to produce?

Front

In a traditional economy, what determines how goods and services are produced?

Back

Customs and traditions passed down through generations

Front

What is a disadvantage of a command economy?

Back

Consumer preferences are not considered in production decisions

Front

In a market economy, what determines what to produce?

Back

Consumer demand and willingness to pay

Front

In a command economy, who decides how goods and services are produced?

Back

The government through a central plan

Front

In a market economy, how are goods and services typically produced?

Back

Based on cost-efficient methods chosen by producers

Front

What is a mixed economic system?

Back

An economy that combines elements of market and command systems.

Front

In a mixed economy, which group(s) make economic decisions?

Back

A combination of government, consumers, and businesses

Front

How does a pure command economy differ from a mixed economy?

Back

Pure command economies are fully controlled by the government.

Front

Which of the following is an example of a command element in a mixed economy? Consumers deciding what products they want to buy, The government regulating an industry for public safety, Businesses producing goods based on price signals, Entrepreneurs starting a new company without restrictions

Back

The government regulating an industry for public safety