Economic Systems

An economic system is how a nation organizes _______________.

• its economy.

• factors of production

• supply and demand

• politics

In a command economy, who determines the prices of goods and services?

• market forces of supply and demand

• the central government

• independent agencies and regulators

• business owners

Which statement best describes the difference between a market economy and a traditional economy?

• in a market economy, decisions are based on custom

• in a traditional economy, decisions are based solely on supply and demand

• in a traditional economy, decisions are based on habit and custom

• in a market economy, decisions are based on habit

Who is primarily responsible for making economic decisions in a market economy?

• the central government

• big business

• market regulators

• individuals

Under which economic system would factors of production most likely be owned by a government?

• Market Economy

• Command Economy

• Traditional Economy

• Mixed Economy

________ economies are characterized by a hands-off approach to the economy by the government.

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

The United States economy can best be described as what kind of economy?

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

Which characteristics best describe a traditional economy?

• labor unions and wages

• customs and religions

• Communism and inflation

• markets and systems

Free enterprise is:

• competition between two companies

• bartering

• Laissez Faire

• private property

Which are examples of free enterprise:

• Burger King v. McDonalds

• carrots v. potatoes

• cars v. trucks

• Target v. Starbucks