Unit 1: Economic Systems

In a traditional economic system people usually exchange goods or services rather than use money. Which of the following is an example of this exchange process?

• Charging goods on a credit card
• Using currency to pay
• Bartering with a seller
• Paying for services by sell

A market economy is very different from a command economy. Which of the following is found in a market economy? 

• Guaranteed yearly pay raises
• Government control of agriculture
• competition
• government control of industry

The economic system of communist countries is most closely related to which of the following?

• market
• command
• traditional
• supply and demand

When a country has a market economy, which of these statements correctly defines this system?

• workers are guaranteed a pay raise every year
• the gov't controls most of the business in the country
• all basic goods are provided without charge
• companies produce goods of their choice and consumers decide whether to buy them

Which of the following would reflect a country with a mixed economy?

• prices and wages are solely regulated by the government
• a combination of privately-owned industry and government control.
• A country's distribution of resources is based on inheritance 
• Prices and wages are determined by supply and demand only

economic system based on traditions and social customs

• economic system
• traditional
• supply and demand
• market

Economic system based on supply and demand, instead of government regulation

• Market
• Traditional
• Command
• Mixed

Economic system that combines qualities of market and command systems into one

• Mixed
• Market
• Command
• Traditional

Which trade barrier discourages trade by placing a tax on foreign goods?

• Tariff
• Embargo
• Debt
• Quota

What is the purpose of a tariff?

• Increase the prices of imported goods to protect domestic industry
• Increase the prices of exported goods to protect domestic industry
• Limit trade
• Block trade