Economic Systems

Economic Systems

After reading Section B, answer the following questions

Multiple Choice

The way in which an economic system answers the basic economic questions depends upon the country’s

• supply

• government

• demand

• products

Multiple Choice

In a traditional economic system, the question of what to produce is answered by producing

• what the government chooses.

• what consumers need and want.

• what supply dictates.

• what has always been produced.

Multiple Choice

In a communist command economy, who decides how the economic questions will be answered?

• Businesses

• Individuals

• Government

• A venture team

Multiple Choice

In a socialist economic system, who tends to answer the question of how products will be produced?

• Government and business

• Government and individuals

• Business and individuals

• Tradition and government

Multiple Choice

What action do consumers take that determines what will be produced in a market economy?

• Apply for jobs

• Cast economic votes

• Produce products

• Comparison shop

Multiple Choice

Lack of economic growth is a major problem for __________ economic systems.

• traditional

• communist command

• market

• socialist command

Multiple Choice

Communist command economies are most likely to experience which of the following problems:

• Shortage of capital investment

• Surplus of consumer goods

• Poor quality products

• High income taxes

Multiple Choice

A major problem for individuals and private businesses in a socialist command economy is

• a lack of competition.

• taxes.

• a shortage of consumer goods.

• profit.

Multiple Choice

Which of the following is a potential problem in market economies:

• No competition

• Total government control

• Production quotas for businesses

• Financial loss