Types of Economies Review for Test

In a market system who answers the economic questions?

• Government
• Consumers
• Businesses
• Government and consumers

If a country's income and goods are rising from year to year that country is experiencing 

• a rising standard of living
• a falling standard of living
• a recession
• a golden age

Adam Smith created the concept of the invisible hand.  Which economic system would he feel would most closely fit with his invisible hand theory?

• mixed
• command
• market
• traditional

All of the following would be part of a market economy EXCEPT:

• unrestricted competition
• competitive prices
• variety in goods
• strong government planning

In which economic system would it be the easiest to start a business?

• Command
• Mixed
• Traditional 
• Market

Under a command system, who owns the factors of production?

• Consumers
• Elders
• Government
• Businesses

The United States is considered to have a _________ economy.

• Traditional 
• Command
• Market
• Mixed

The three basic questions are answered by 

• market economies
• command economies
• traditional economies
• all economies

____________ is to market economy as communism is to a command economy.

• PJ's Coffee
• Consumers
• Socialism
• Laissez-faire system

In command economies people get all of the following EXCEPT:

• Needs fulfilled not wants
• Variety
• Government sponsored healthcare and services
• economic decisions made by the government