Unit #1 Standard #4

"In these (economic) structures, people looked to past practices plus cultural and religious beliefs to decide what to produce, how to produce it, how products would be distributed, and even when tasks should be performed."

What type of economy is the author of this statement describing?

• command economy

• mixed economy

• traditional economy

• market economy

In a market economy, ultimate power rests with

• the government

• the military

• consumers

• union leaders

Which type of economy is illustrated by these statements?

The state sets the price of consumer goods. A factory manager meets production quotas for the month. A central planning agency determines wages for agricultural workers.

• market

• command

• traditional

• laissez-faire

An economy with minimal government involvement is a

• market economy

• command economy

• traditional economy

• mixed economy

Free Market

• Capitalism

• Communism

This Economic system is also called a Capitalist, or Free Market, system. This system encourages Entrepeneurs, Private Property Rights, and little government interference in the economy.

• Communism

• Command Economy

• Mixed Economy

• Market Economy

An Economic System that is centrally planned by the government. Individual consumers and producers do not make the basic economic decisions.

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Due to high spending by the government, The United States today is essentially this type of Economy.

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Market Economies enrourage entrepeneurs to establish new businesses by giving them economic freedom.

• True

• False

Which is NOT a characteristic of a Market Economy?

• Property Rights

• Freedom of Enterprise

• Competition

• Total Government Control