Unit 9 Economic Systems and Development Review 1

"Laissez-faire" economics is Adam Smith's term for

• Child Labor Laws

• No Government interference in the market

• Profit Margins

• Supply and Demand

Small grants of money to help people start businesses in developing countries are

• remittance

• loans

• student loans

• microloans

Which of the following is a NOT true about a traditional economy?

• The government makes all economic decisions.

• Workers do not produce goods specifically for trade.

• People live by subsistence activities.

• There is no formal system of money.

Which of the following economic systems would have the highest government involvement?

• Ca[italism

• Free Market

• Command

• Communist

Which statement applies to a market economy?

• Government planning agencies make some economic decisions and private businesses make others.

• Individual decision-making as well as supply and demand greatly influence economic decisions.

• The government controls all resources, labor, supply, and means of production.

• Customs, religion, and traditions determine most economic decisions.

Most countries today are ______ economies.

• Capitalist

• Communist

• Socialist

• Mixed

Read the passage below to answer the question that follows.

....Knowledge about Inuit history, and the land, plants and wildlife, has been passed down through the generations. The family is the center of Inuit culture, and cooperation and sharing are basic principles in Inuit society. Inuit share the food they have hunted, and everyone does his or her part to help those in need....

The Inuit economy is most likely a

• traditional economy

• command economy

• market economy

• mixed economy

_________ and _________ is the amount of a commodity, product, or service available AND the desire of buyers (consumers) for it, considered as factors regulating its price.

• Communism ... Capitalism

• Socialism ... Capitalism

• Supply ... Demand

• Demand ... Supply

According to the International Monetary Fund, GDP per Capita is highest in the following countries.

This would mean most people in the country ___________________.

• Have a high standard of living

• Have a low standard of living

• Live in rural areas

• Live in the capital cities

A type of economic system in which production of goods and services is determined by the demand from consumers.

• command economy

• market economy

• traditional