European Economics Test Review

All economies in the world are essentially

• market economies
• mixed economies
• traditional economies
• command economies

Customs and habits are important to which type of economy?

• Mixed
• Market
• Command
• Traditional

In a command economy, farms and factories are controlled by

• individuals
• corporations
• the government
• farm and factory workers

Germany and the U.K. both practice what type of economy?

• market economy

• command economy

• traditional economy

Individuals and corporations own most of the farms in Mexico. This is evidence of a ______ economy.

• market
• mixed
• command
• traditional

Money people use in a country is called

• trade
• currency
• exchange
• voluntary

Which statement is a PRIMARY characteristic of a capitalist system?

• graduated income tax

• private ownership of property

• equal distribution of resources

• government regulation of business

Which characteristic is PRIMARILY associated with a command economy?

• competition among suppliers in the market

• free access to the marketplace for producers

• centralized decision making about what will be produced

• competition in the marketplace to provide consumer choice

In a command economy, how is it determined what goods and services will be produced?

• Businesses decide what to produce on the basis of market conditions

• Consumers decide through their behavior in the marketplace.

• Central government planning decides what will be produced.

• Supply and demand control production and price.

When producers and consumers decide what a country will make, how they will make it, and who gets it.

• trade barrier
• market economy
• quota
• command economy