Economics Lesson 1.2 Economics Systems

Open Ended

What are the three basic questions of economies?

Multiple Choice

What is a traditional economy?

• An economy where the government makes most of the economic decisions.

• An economy where consumers and businesses jointly answer questions of what, how, and for whom to produce.

• An economy where traditional societies use ritual/habitat/custom to answer what, how, and for whom to produce.

• An economy where the government and businesses jointly answer questions of what, how, and for whom to produce.

Multiple Select

What are the disadvantages of a traditional economy?

• Stable and time-tested practices

• Limited innovation and adaptation

• Close-knit community decision-making

• Slow to adopt improvements or new ideas

Multiple Choice

What is a Command (Centrally-Planned) Economy?

• An economy where the government makes all key economic decisions

• An economy driven by supply and demand

• An economy based on free market principles

• An economy that relies on foreign trade

Multiple Select

What are the advantages of a Command (Centrally-Planned) Economy?

• Potential for universal employment and job security

• Lack of incentives for innovation or efficiency

• Emphasis on equal access to basic services

• Possibility of poor quality products due to limited competition

Multiple Choice

Which of the following best describes the role of supply and demand in a market economy?

• It determines the literacy rate of the country.

• It dictates the government's role in economic decisions.

• It influences the prices of goods and services.

• It has no impact on the economy.

Multiple Choice

In a market economy, who primarily decides what goods and services should be produced?

• The government

• Consumers

• Large corporations

• International trade partners

Multiple Choice

What does the term "invisible hand" refer to in economics?

• A government regulation

• A market force

• A social contract

• A financial institution

Multiple Select

What are the effects of the invisible hand on the economy?

• Encourages innovation and efficiency

• Promotes overall economic growth and fairness

• Increases government intervention

• Reduces competition

Multiple Select

What are the disadvantages of a free market?

• Economic Efficiency and innovation

• High level of economic freedom and choice

• Income inequality and potential monopolies

• Market failures (e.g., under-provision of public goods)

Multiple Choice

Which of the following best describes a mixed economy?

• An economy where all decisions are made by the government.

• An economy that operates without any government intervention.

• An economy that incorporates elements of both market and command economies.

• An economy where decisions are made solely through market forces without any regulation.

Poll

How confident do you feel about this topic now?

• Very confident
• Somewhat confident
• Not confident