Economic Systems lesson

Multiple Choice

What is an example of a trade-off in economic decision-making?

• A city decides to build a new amusement park, increasing investment in education.

• A city chooses to hire more police officers, which does not affect any other budget areas.

• A government decides to build new roads, resulting in no investment in parks.

• A government increases taxes without changing public spending.

Drag and Drop

What determines how goods and services will be distributed in an economic system?

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The country's political leader

Type of economic system under which people live

The size of the country

The country's main export

Dropdown

How are goods and services typically distributed in the US?

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Drag and Drop

Which of the following is NOT mentioned as a method of distribution of goods and services?

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Price system

Lottery

First come, first serve

Government allocation

Dropdown

According to the economic question of "HOW it should be produced?", which of the following is NOT a consideration?

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Multiple Choice

What is a traditional economy?

• An economic system based on digital technology

• An economic system where the government decides everything

• An economic system in which the allocation of scarce resources, and other economic activity, is the result of ritual, habit, or custom

• An economic system based solely on the stock market

Drag and Drop

In traditional economies, how are the roles in the workforce typically determined?

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By individual choice and education

By government assignments

By family lineage and tradition

By competitive exams

Dropdown

What is one of the advantages of economies based on tradition?

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Drag and Drop

What is a disadvantage of economies based on tradition?

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People do not know what is expected of them

Change is often discouraged or even punished

There is a weak sense of family and community

Methods of production are extremely efficient

Multiple Choice

What is a command economy?

• An economic system where market forces control the production of goods

• An economic system characterized by a central authority that makes most of the major economic decisions

• An economic system where individuals make all the decisions regarding production and pricing

• An economic system based solely on the distribution of goods without a central authority

Multiple Select

Which of the following can lead a command economy?

• A king

• A dictator

• A religion

• An Oligarchy

• A president

Dropdown

Which of the following countries is an example of a modern, more liberal version of a command economy, known as socialism?

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Multiple Choice

How does an economy based on command differ from a traditional economy?

• In a command economy, individuals have more influence on economic decisions.

• In a command economy, traditions control the factors of production.

• In a command economy, government leaders control the factors of production, not tradition.

• In a command economy, decisions are made by a large group of people.

Multiple Choice

What is one of the advantages of economies based on command according to the text?

• High level of competition among businesses

• High level of individual freedoms

• High level of job security because the government doesn’t go out of business

• High incentive to work harder due to consumer choice

Dropdown

Which of the following are given to illustrate a disadvantage of command-based economies?

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Multiple Choice

What is a disadvantage of command-based economies in terms of innovation?

• There is too much innovation due to competition

• There is no incentive to innovate or come up with good ideas

• Innovation is encouraged by the high quality of goods

• Innovation is driven by the high level of individual freedoms

Multiple Choice

What is a market in economic terms?

• A place where only buyers interact

• A system where the government determines price and quantity

• A meeting place or arrangement through which buyers and sellers interact to determine price and quantity of an economic product

• A location where goods are given away for free

Multiple Choice

What is a market economy?

• An economic system where the government allocates resources

• An economic system in which supply, demand, and the price system help people allocate resources and make the WHAT, HOW, and FOR WHOM to produce decisions

• An economy based solely on barter trade

• An economy where prices are fixed and not influenced by supply and demand

Drag and Drop

What is another term for a market economy?

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Command economy

Traditional economy

Free enterprise economy

Mixed economy

Dropdown

What is a key characteristic of economic decisions made in a capitalist system?

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Multiple Choice

What is one of the advantages of economies based on markets according to the learning material?

• Limited choices for consumers

• Government determines the cost of items

• Freedom, choices, and competition provide a wide array of goods and services

• Wealth is equally distributed

Multiple Choice

What is a disadvantage of economies based on markets?

• People have too many choices

• Wealth is equally distributed

• People who are unable to work must rely on others to survive

• Competition decreases the variety of goods and services