WQ19: Solutions to Scarcity + Types of Economies

Which of these statements describes a disadvantage of a traditional economy?

• Everyone knows his or her role

• New ways of doing things are encouraged

• New ways of doing things are discouraged

• Difficult economic decisions are made by the state

Which of these economic systems have the least in common?

• market economy and capitalism

• command economy and socialism

• command economy and capitalism

• free-enterprise economy and market economy

Which of these statements is descriptive of a market economy?

• Most media is state-owned and operated.

• The government determines what is produced and by whom.

• Major economic decisions are made for individuals, not by them.

• Major economic' decisions are made by individuals, not for them.

In which of these systems is the government most likely to provide people with goods and services they could not otherwise afford?

• market economy

• socialist economy

• traditional economy

• free-enterprise economy

Which of these helps explain why mixed economies develop?

• Nations evolve, shed policies that don't work, and adopt ones that do.

• People are seldom exposed to the ideas and technologies of other cultures.

• Government control of an economy tens to make a nation more prosperous.

• Government control of an economy leads to a diversity of economic approaches.

Which of the following is a feature of a command economy that distinguishes it from a socialist economy?

• All production is managed by the government.

• All economic decisions are made by the free market.

• All economic decisions are based on custom and habit.

• Some degree of private ownership and activity is allowed.

In a transitioning economy, why would privatization tend to raise a nation's overall standard of living?

• People are less likely to assume the risks of entrepreneurship.

• It places the means of production in the hands of the government.

• People are more likely to be productive when it benefits them personally.

• It places a nation's ruling class in a position to administer the economy.

Which of the following is a cause of struggle in the process of privatization?

• People must adjust to government control of their economy.

• People must decide how best to get along without a free market.

• People must adjust to the costs and risks that are part of capitalism.

• People must become used to no longer owning their own homes and businesses.

Which type of economy is most prevalent in the world today?

• mixed

• market

• command

• traditional

Which of the following lists economic systems in order from least to most flexible?

• command, socialism, free market

• free market, socialism, command

• socialism, command, free market

• free market, command, socialism