Every Society/Economy

What is the definition of command economy?

• economic system combining private and public enterprise.

• an economy in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

• An economy in which production, investment, prices, and incomes are determined centrally by a government.

Every society must answer what 3 questions?

• What to produce, How to produce it, For whom to produce

• What to produce, Where to produce it, For whom to produce

• What to produce, How to produce, When to produce

• What to produce, How long will it take to produce, When production will be finished

What type of Economy is based on 'old fashioned ways' or farming?

• Traditional
• Market
• Mixed
• Command

Which is NOT a characteristic of a Market Economy?

• Property Rights
• Freedom of Enterprise
• Competition
• Total Government Control

In a traditional economy, how are economic decisions made?

• Government leaders
• Custom and habit
• Combination of consumers and planners
• Consumers and producers

What economy is where the government has no control of the economy? The businesses in this economy are all privately owned, which means the government does not own them.

• Market
• Command
• Mixed
• Traditional