Economic Systems w/ques.

Multiple Choice

Which of the following questions does an economic system help answer?

• What to produce, how to produce, and for whom to produce

• How to increase population

• When to hold elections

• Where to build schools

Multiple Choice

Which of the following best describes a traditional economy?

• An economy where resource allocation is based on ritual, habit, and custom.

• An economy where the government makes all economic decisions.

• An economy driven by free market forces.

• An economy based on technological innovation.

Multiple Select

Which of the following groups are examples of societies with traditional economies?

• The Amish

• The Mbuti in Africa

• Australian Aborigines

• Silicon Valley entrepreneurs

Fill in the Blank

In a traditional economy, everyone knows their ___ or job.

Multiple Choice

In a command economy, who is primarily responsible for making economic decisions?

• The government or central authority

• Individual consumers

• Private businesses

• Foreign investors

Multiple Choice

What is one advantage of a command economy as shown in the images?

• It is capable of dramatic change.

• It encourages individual entrepreneurship.

• It has a high degree of consumer choice.

• It relies on traditional customs.

Multiple Choice

Which of the following is an advantage of a command economy as shown in the images?

• Many public services are available at little or no cost.

• People and businesses act in their own best interest.

• Able to adjust to change gradually.

• Lacks incentives to work.

Multiple Select

Which of the following are disadvantages of a command economy?

• Does not meet the wants and needs of consumers

• Lacks incentives to work

• No room for individuality

• Able to adjust to change gradually

Multiple Choice

In a market economy, who decides what goods and services are produced?

• The government

• People and businesses

• Military leaders

• Religious leaders

Multiple Choice

Which of the following is an advantage of a market economy?

• Individual freedom for everyone

• Centralized government control

• Limited consumer choices

• Guaranteed job security

Fill in the Blank

A __ economy provides an incredible variety of goods and services.

Multiple Choice

What questions does an economic system answer for a society?

• What, How, and For Whom

• When, Where, and Why

• Who, What, and Where

• How, When, and Why